Benefitfocus, Inc.
Benefitfocus,Inc. (Form: 8-K, Received: 04/27/2017 16:43:51)

 

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) April 27, 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 April 27, 2017, Benefitfocus, Inc. issued a press release announcing its operating results for the quarter ended March 31, 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 April 27, 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: April 27, 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 First Quarter 2017 Financial Results

                Total revenue of $64.2 million grew 17% year-over-year

 

Charleston, S.C. – April 27, 2017 – Benefitfocus, Inc. (NASDAQ: BNFT), a leading provider of cloud-based benefits management software , today announced its first quarter 2017 financial results.

“Benefitfocus delivered a strong start to 2017, as our revenue and profitability exceeded the high-end of our guidance,” said Shawn Jenkins, Chief Executive Officer of Benefitfocus. “Demand for our platform drove 26% growth in our employer revenue and, once again, our software revenue retention rate was over 95%.”

 

Jenkins added, “Benefitfocus continues to make great strides toward establishing our cloud-based platform as the market standard. Our Q1 results reflect our ability to leverage the investments we have made in our products, technology and distribution to drive strong top-line growth and margin expansion, which we believe can generate long-term value for our shareholders.”  

 

 

First Quarter 2017 Financial Highlights

Revenue

 

Total revenue was $64.2 million, an increase of 17% compared to the first quarter of 2016.

 

Software services revenue was $56.7 million, an increase of 16% compared to the first quarter of 2016.

 

Professional services revenue was $7.5 million, an increase of 28% compared to the first quarter of 2016.

 

Employer revenue was $40.6 million, an increase of 26% compared to the first quarter of 2016.

 

Insurance carrier revenue was $23.5 million, an increase of 4% compared to the first quarter of 2016.

Net Loss

 

GAAP net loss was ($7.7) million, compared to ($13.4) million in the first quarter of 2016. GAAP net loss per share was ($0.25), based on 30.7 million basic and diluted weighted average common shares outstanding, compared to ($0.46) for the first quarter of 2016, based on 29.2 million basic and diluted weighted average common shares outstanding.

Non-GAAP Net Loss and Adjusted EBITDA

 

Non-GAAP net loss was ($3.2) million, compared to ($8.6) million in the first quarter of 2016. Non-GAAP net loss per share was ($0.11), based on 30.7 million basic and diluted weighted average common shares outstanding, compared to ($0.29) for the first quarter of 2016, based on 29.2 million basic and diluted weighted average common shares outstanding.


 

Adjusted EBITDA was $3.6 million, compared to ( $ 3.7 ) million in the first 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 March 31, 2017 totaled $57.7 million, compared to $58.9 million at the end of the fourth quarter of 2016.

First Quarter and Recent Business Highlights

 

We ended the quarter with 853 large employer customers, up from 741 at the end of the year-ago period and 833 at the end of the fourth quarter of 2016.

 

We hosted our 7 th annual One Place user conference in Orlando, Florida and announced enhancements to the BENEFITFOCUS® Platform that should accelerate system performance and provide a new level of data visibility to employers, insurance carriers, brokers and consultants.

 

We launched Benefitfocus Business Intelligence, which provides employers, insurance carriers, brokers and consultants with a new enterprise class reporting framework built on the Benefitfocus Data Cloud.

 

We launched Benefitfocus Account Services, which includes Consolidated Billing and Invoice Reconciliation.

 

We launched the Data Dashboard which, provides a calendar view of scheduled data transmissions across both inbound and outbound file transmissions.

 

In conjunction with unveiling an all-new Health Savings Account (HSA) experience, we announced that the Benefitfocus Platform enrolled employees in over 600,000 consumer-directed health accounts representing over $880 million in employee and employer contributions during open enrollment.

Business Outlook

Based on information available as of April 27, 2017, Benefitfocus is providing guidance for the second quarter and full year 2017 as indicated below.

Second 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 31.0 million basic and diluted weighted average common shares outstanding.

 

Adjusted EBITDA is expected to be in the range of $1.5 million to $2.5 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, April 27, 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

2


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 May 4, 2017, and can be accessed by dialing (844) 512-2921 (domestic) or (412) 317-6671 (international) with passcode 13659163.

 

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 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.  Beginning in the first quarter of 2017, we revised our definition of adjusted EBITDA to also exclude costs not core to our business.  The revision to the definition of adjusted EBITDA had no material impact on our reported adjusted EBITDA for the three months ended March 31, 2017 or prior periods. 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; our ability to maintain our culture and recruit and retain qualified personnel; fluctuations in our financial results; general economic risks; the immature and volatile market for our products and services; the need to innovate and provide useful products and services; risks

3


related to changing healthcare and other applicable regulations; 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

March 31,

 

 

 

2017

 

 

2016

 

Revenue

 

$

64,171

 

 

$

54,792

 

Cost of revenue (1)(2)

 

 

31,601

 

 

 

29,297

 

Gross profit

 

 

32,570

 

 

 

25,495

 

Operating expenses: (1)(2)

 

 

 

 

 

 

 

 

Sales and marketing

 

 

17,277

 

 

 

13,574

 

Research and development

 

 

12,181

 

 

 

15,015

 

General and administrative

 

 

7,757

 

 

 

8,395

 

Total operating expenses

 

 

37,215

 

 

 

36,984

 

Loss from operations

 

 

(4,645

)

 

 

(11,489

)

Other income (expense):

 

 

 

 

 

 

 

 

Interest income

 

 

27

 

 

 

56

 

Interest expense on building lease financing obligations

 

 

(1,860

)

 

 

(1,716

)

Interest expense on other borrowings

 

 

(1,062

)

 

 

(198

)

Other expense

 

 

(148

)

 

 

 

Total other expense, net

 

 

(3,043

)

 

 

(1,858

)

Loss before income taxes

 

 

(7,688

)

 

 

(13,347

)

Income tax expense

 

 

 

 

 

5

 

Net loss

 

$

(7,688

)

 

$

(13,352

)

Comprehensive loss

 

$

(7,688

)

 

$

(13,352

)

 

 

 

 

 

 

 

 

 

Net loss per common share:

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.25

)

 

$

(0.46

)

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

 

Basic and diluted

 

 

30,658,468

 

 

 

29,213,198

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Cost of revenue

 

$

662

 

 

$

548

 

Sales and marketing

 

 

1,332

 

 

 

632

 

Research and development

 

 

718

 

 

 

1,468

 

General and administrative

 

 

1,676

 

 

 

2,085

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Cost of revenue

 

$

36

 

 

$

36

 

Sales and marketing

 

 

13

 

 

 

10

 

Research and development

 

 

12

 

 

 

15

 

General and administrative

 

 

3

 

 

 

3

 

 


5


Benefitfocus, Inc.

Unaudited Consolidated Balance Sheets

(in thousands, except share and per share data)

 

 

As of

March 31,

2017

 

 

As of

December 31,

2016

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

57,671

 

 

$

56,853

 

Marketable securities

 

 

 

 

 

2,007

 

Accounts receivable, net

 

 

23,898

 

 

 

28,340

 

Accounts receivable, related party, net

 

 

3,393

 

 

 

4,626

 

Prepaid expenses and other current assets

 

 

5,838

 

 

 

4,449

 

Total current assets

 

 

90,800

 

 

 

96,275

 

Property and equipment, net

 

 

78,032

 

 

 

80,518

 

Intangible assets, net

 

 

343

 

 

 

408

 

Goodwill

 

 

1,634

 

 

 

1,634

 

Other non-current assets

 

 

1,227

 

 

 

1,575

 

Total assets

 

$

172,036

 

 

$

180,410

 

Liabilities and stockholders' deficit

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

5,024

 

 

$

5,829

 

Accrued expenses

 

 

10,133

 

 

 

10,867

 

Accrued compensation and benefits

 

 

10,754

 

 

 

17,347

 

Deferred revenue, current portion

 

 

29,545

 

 

 

35,426

 

Revolving line of credit, current portion

 

 

14,000

 

 

 

20,000

 

Financing and capital lease obligations, current portion

 

 

3,154

 

 

 

2,604

 

Total current liabilities

 

 

72,610

 

 

 

92,073

 

Deferred revenue, net of current portion

 

 

39,366

 

 

 

40,412

 

Revolving line of credit, net of current portion

 

 

34,246

 

 

 

20,246

 

Financing and capital lease obligations, net of current portion

 

 

57,137

 

 

 

57,934

 

Other non-current liabilities

 

 

2,834

 

 

 

3,056

 

Total liabilities

 

 

206,193

 

 

 

213,721

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Stockholders' deficit:

 

 

 

 

 

 

 

 

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

   no shares issued and outstanding at March 31, 2017

   and December 31, 2016

 

 

 

 

 

 

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

   30,786,234 and 30,429,014 shares issued and outstanding

   at March 31, 2017 and December 31, 2016, respectively

 

 

30

 

 

 

30

 

Additional paid-in capital

 

 

342,292

 

 

 

335,059

 

Accumulated deficit

 

 

(376,479

)

 

 

(368,400

)

Total stockholders' deficit

 

 

(34,157

)

 

 

(33,311

)

Total liabilities and stockholders' deficit

 

$

172,036

 

 

$

180,410

 

 


6


Benefitfocus, Inc.

Unaudited Consolidated Statements of Cash Flows

(in thousands)

 

 

Three Months Ended

March 31,

 

 

 

2017

 

 

2016

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

Net loss

 

$

(7,688

)

 

$

(13,352

)

Adjustments to reconcile net loss to net cash and cash

   equivalents used in operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

4,005

 

 

 

3,043

 

Stock-based compensation expense

 

 

4,388

 

 

 

4,733

 

Interest accrual on financing obligation

 

 

1,873

 

 

 

1,716

 

Loss on disposal or impairment of property and equipment

 

 

148

 

 

 

 

Provision for doubtful accounts

 

 

22

 

 

 

(22

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

5,654

 

 

 

(3,562

)

Accrued interest on short-term investments

 

 

7

 

 

 

130

 

Prepaid expenses and other current assets

 

 

(1,389

)

 

 

(2

)

Other non-current assets

 

 

349

 

 

 

(508

)

Accounts payable

 

 

(899

)

 

 

(3,911

)

Accrued expenses

 

 

(140

)

 

 

2,715

 

Accrued compensation and benefits

 

 

(6,594

)

 

 

(5,304

)

Deferred revenue

 

 

(6,927

)

 

 

(5,419

)

Other non-current liabilities

 

 

(222

)

 

 

(75

)

Net cash and cash equivalents used in operating activities

 

 

(7,413

)

 

 

(19,818

)

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

 

 

 

26,525

 

Purchases of property and equipment

 

 

(2,103

)

 

 

(2,610

)

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

 

 

(103

)

 

 

21,911

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

Draws on revolving line of credit

 

 

28,000

 

 

 

 

Payments on revolving line of credit

 

 

(20,000

)

 

 

(25,000

)

Proceeds from exercises of stock options and ESPP

 

 

2,454

 

 

 

163

 

Remittance of taxes upon vesting of restricted stock units

 

 

 

 

 

(202

)

Payments on financing and capital lease obligations

 

 

(2,120

)

 

 

(2,875

)

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

 

 

8,334

 

 

 

(27,914

)

Net increase (decrease) in cash and cash equivalents

 

 

818

 

 

 

(25,821

)

Cash and cash equivalents, beginning of period

 

 

56,853

 

 

 

48,074

 

Cash and cash equivalents, end of period

 

$

57,671

 

 

$

22,253

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of non-cash investing and financing activities

 

 

 

 

 

 

 

 

Property and equipment purchases in accounts payable and accrued expenses

 

$

200

 

 

$

428

 

Property and equipment purchased with financing and capital lease obligations

 

$

 

 

$

733

 

Post contract support purchased with financing obligations

 

$

 

 

$

1,048

 

 


7


Benefitfocus, Inc.

Unaudited Reconciliation of GAAP to Non-GAAP Measures

(in thousands, except share and per share data)

 

 

Three Months Ended

March 31,

 

 

 

2017

 

 

2016

 

Reconciliation from Gross Profit to Non-GAAP Gross Profit:

 

 

 

 

 

 

 

 

Gross profit

 

$

32,570

 

 

$

25,495

 

Amortization of acquired intangible assets

 

 

36

 

 

 

36

 

Stock-based compensation expense

 

 

662

 

 

 

548

 

Total net adjustments

 

 

698

 

 

 

584

 

Non-GAAP gross profit

 

$

33,268

 

 

$

26,079

 

 

 

 

 

 

 

 

 

 

Reconciliation from Operating Loss to Non-GAAP Operating Loss:

 

 

 

 

 

 

 

 

Operating loss

 

$

(4,645

)

 

$

(11,489

)

Amortization of acquired intangible assets

 

 

64

 

 

 

64

 

Stock-based compensation expense

 

 

4,388

 

 

 

4,733

 

Total net adjustments

 

 

4,452

 

 

 

4,797

 

Non-GAAP operating loss

 

$

(193

)

 

$

(6,692

)

 

 

 

 

 

 

 

 

 

Reconciliation from Net Loss to Adjusted EBITDA:

 

 

 

 

 

 

 

 

Net loss

 

$

(7,688

)

 

$

(13,352

)

Depreciation

 

 

3,111

 

 

 

2,353

 

Amortization of software development costs

 

 

830

 

 

 

626

 

Amortization of acquired intangible assets

 

 

64

 

 

 

64

 

Interest income

 

 

(27

)

 

 

(56

)

Interest expense on building lease financing obligations

 

 

1,860

 

 

 

1,716

 

Interest expense on other borrowings

 

 

1,062

 

 

 

198

 

Income tax expense

 

 

 

 

 

5

 

Stock-based compensation expense

 

 

4,388

 

 

 

4,733

 

Total net adjustments

 

 

11,288

 

 

 

9,639

 

Adjusted EBITDA

 

$

3,600

 

 

$

(3,713

)

 

 

 

 

 

 

 

 

 

Reconciliation from Net Loss to Non-GAAP Net Loss:

 

 

 

 

 

 

 

 

Net loss

 

$

(7,688

)

 

$

(13,352

)

Amortization of acquired intangible assets

 

 

64

 

 

 

64

 

Stock-based compensation expense

 

 

4,388

 

 

 

4,733

 

Total net adjustments

 

 

4,452

 

 

 

4,797

 

Non-GAAP net loss

 

$

(3,236

)

 

$

(8,555

)

 

 

 

 

 

 

 

 

 

Calculation of Non-GAAP Earnings Per Share:

 

 

 

 

 

 

 

 

Non-GAAP net loss

 

$

(3,236

)

 

$

(8,555

)

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - basic and diluted

 

 

30,658,468

 

 

 

29,213,198

 

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

   diluted

 

 

30,658,468

 

 

 

29,213,198

 

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

 

$

(0.11

)

 

$

(0.29

)

 


8


Benefitfocus, Inc.

Unaudited Reconciliation of GAAP to Non-GAAP Guidance Ranges

(in millions, except per share data)

 

 

Second Quarter 2017

 

 

Full Year 2017

 

 

 

Range

 

 

Range

 

 

 

Low

 

 

High

 

 

Low

 

 

High

 

Reconciliation from Net Loss Guidance to Adjusted EBITDA Guidance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss - Guidance range

 

$

(9.9

)

 

$

(8.9

)

 

$

(31.7

)

 

$

(27.7

)

Depreciation and amortization

 

 

4.0

 

 

 

4.0

 

 

 

14.9

 

 

 

14.9

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

2.6

 

 

 

2.6

 

 

 

10.0

 

 

 

10.0

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

4.8

 

 

 

4.8

 

 

 

19.8

 

 

 

19.8

 

Total net adjustments

 

 

11.4

 

 

 

11.4

 

 

 

44.7

 

 

 

44.7

 

Adjusted EBITDA - Guidance range

 

$

1.5

 

 

$

2.5

 

 

$

13.0

 

 

$

17.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss - Guidance range

 

$

(9.9

)

 

$

(8.9

)

 

$

(31.7

)

 

$

(27.7

)

Amortization of acquired intangible assets

 

 

0.1

 

 

 

0.1

 

 

 

0.4

 

 

 

0.4

 

Stock-based compensation expense

 

 

4.8

 

 

 

4.8

 

 

 

19.8

 

 

 

19.8

 

Total net adjustments

 

 

4.9

 

 

 

4.9

 

 

 

20.2

 

 

 

20.2

 

Non-GAAP net loss - Guidance range

 

$

(5.0

)

 

$

(4.0

)

 

$

(11.5

)

 

$

(7.5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calculation of Non-GAAP Earnings Per Share Guidance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net loss - Guidance range

 

$

(5.0

)

 

$

(4.0

)

 

$

(11.5

)

 

$

(7.5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - basic and diluted

 

 

31.0

 

 

 

31.0

 

 

 

30.9

 

 

 

30.9

 

Shares used in computing non-GAAP

    net loss per share - basic and diluted

 

 

31.0

 

 

 

31.0

 

 

 

30.9

 

 

 

30.9

 

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

 

$

(0.16

)

 

$

(0.13

)

 

$

(0.37

)

 

$

(0.24

)

 

9