Benefitfocus Announces Preliminary Fourth Quarter and Full Year 2013 Financial Results
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Preliminary 4Q total revenue of
$30.3 million grew 36% year-over-year; employer revenue of$13.2 million grew 79% year-over-year -
Preliminary 2013 total revenue of
$104.8 million grew 28% year-over-year, up from 19% growth in 2012; employer revenue of$40.7 million grew 71% year-over-year, up from 49% growth in 2012
"We are pleased to have delivered strong preliminary fourth quarter results, which exceeded our expectations on both the top and bottom line, and were highlighted by 79% growth in our employer revenue," said
Jenkins added, "As we begin 2014, we are very excited about
Preliminary Fourth Quarter 2013 Financial Highlights
Revenue
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Total revenue is expected to be
$30.3 million , an increase of 36% compared to the fourth quarter of 2012. -
Software revenue is expected to be
$28.3 million , an increase of 36% compared to the fourth quarter of 2012. -
Professional services revenue is expected to be
$2.0 million , an increase of 45% compared to the fourth quarter of 2012. -
Employer revenue is expected to be
$13.2 million , an increase of 79% compared to the fourth quarter of 2012. -
Insurance Carrier revenue is expected to be
$17.0 million , an increase of 15% compared to the fourth quarter of 2012.
Non-GAAP Net Loss and Adjusted EBITDA
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Non-GAAP net loss is expected to be
($7.9) million , compared to($1.7) million in the fourth quarter of 2012. Non-GAAP net loss per share is expected to be ($0.32 ), based on 24.5 million basic and diluted weighted average common shares outstanding, compared to ($0.08 ) in the fourth quarter of 2012 based on 21.3 million basic and diluted weighted average common shares outstanding. These non-GAAP net loss and net loss per share results exclude the impact of any changes to the treatment of our lease accounting. In addition, these non-GAAP earnings per share calculations assume our convertible preferred stock was converted to common stock for the quarter. -
Adjusted EBITDA is expected to be
($5.7) million , compared to positive$67 thousand in the fourth quarter of 2012. These adjusted EBITDA results exclude the impact of any changes to the treatment of our lease accounting.
Balance Sheet and
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Cash, cash equivalents and marketable securities at
December 31, 2013 totaled$78.8 million , compared with$84.7 million at the end of the third quarter of 2013.
Preliminary Full Year 2013 Financial Highlights
Revenue
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Total revenue is expected to be
$104.8 million , an increase of 28% compared to the full year 2012. -
Software revenue is expected to be
$97.7 million , an increase of 29% compared to the full year 2012. -
Professional services revenue is expected to be
$7.0 million , an increase of 21% compared to the full year 2012. -
Employer revenue is expected to be
$40.7 million , an increase of 71% compared to the full year 2012. -
Insurance Carrier revenue is expected to be
$64.1 million , an increase of 11% compared to the full year 2012.
Non-GAAP Net Loss and Adjusted EBITDA
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Non-GAAP net loss is expected to be
($28.8) million , compared to($13.7) million in 2012. Non-GAAP net loss per share is expected to be ($1.30 ), based on 22.2 milion basic and diluted weighted average common shares outstanding, compared to ($0.64 ) in 2012, based on 21.3 million basic and diluted weighted average common shares outstanding. These non-GAAP net loss and net loss per share results exclude the impact of any changes to the treatment of our lease accounting. In addition, these non-GAAP earnings per share calculations assume our convertible preferred stock was converted to common stock for the full year. -
Adjusted EBITDA is expected to be
($20.9) million , compared to($5.5) million in 2012. These adjusted EBITDA results exclude the impact of any changes to the treatment of our lease accounting.
With respect to the Company's expectations under "Preliminary Fourth Quarter 2013 Financial Highlights" and "Preliminary Full Year 2013 Financial Highlights", the Company will provide GAAP net loss for both periods after it has completed the review of the above noted accounting adjustment that is currently in process. The company has not reconciled non-GAAP net loss and adjusted EBITDA for the fourth quarter of 2013 or full year 2013 to GAAP earnings because certain of the reconciling items between these GAAP and non-GAAP measures are under review. The Company will provide its reconciliation for the fourth quarter and full year 2013 when it reports finalized financial results.
Fourth Quarter and Recent Business Highlights
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Ended the quarter with 393 large employer customers, up from 286 at the end of the year ago period and 379 at the end of the third quarter of 2013, and 40 insurance carrier customers, up from 34 at the end of the year ago period and 37 at the end of the third quarter of 2013.
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New employer customer relationships added during the quarter including AMETEK,
Chick-Fil-A , TheSan Francisco 49ers ,Midwest Health andThe University of Alabama Health Services Foundation .
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Added new carrier customer relationships with Prudential Financial, Capital District Physicians' Health Plan and
BlueCross BlueShield of Minnesota .
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Signed an agreement with the
Centers for Medicare & Medicaid Services (CMS) to confirm our status as a Web-Based Entity (WBE). With the agreement,Benefitfocus has extended an employers' ability to provide a comprehensive benefits solution that accounts for all segments of the employee population, including providing new healthcare coverage options for employees eligible under the Affordable Care Act to receive Advanced Premium Tax Credits (APTC) through theFederally Facilitated Marketplace (FFM).
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Introduced new product functionality, including a new Flexible Query Tool, that expands our Big Data and Analytics capability to include ad hoc reporting capabilities that enable employers, consultants and insurance carriers to access and analyze the benefits data that is more relevant to their needs. We also introduced
Web Stats , which provides customers aggregated information about their employees' preferences and buying patterns in order to provide the right enrollment experience for their unique population.
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Appointed
Stephen M. Swad , the President and Chief Executive Officer ofRosetta Stone , to its Board of Directors as an independent director.Mr. Swad is chair of the Benefitfocus Board's Compensation Committee and also serves as a member of the Audit Committee.
Business Outlook
Based on information available as of
First Quarter 2014:
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Total revenue is expected to be in the range of
$29.6 million to$30.1 million . -
Non-GAAP net loss is expected to be in the range of
($13.0) million to($13.5) million , or ($0.53 ) to ($0.55 ) per share, based on 24.5 million basic and diluted weighted average common shares outstanding. -
Adjusted EBITDA is expected to be in the range of
($10.5) million to($11.0) million .
Full Year 2014:
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Total revenue is expected to be in the range of
$130.0 million to$134.0 million . -
Non-GAAP net loss is expected to be in the range of
($59.0) million to($63.0) million , or ($2.41 ) to ($2.57 ) per share, based on 24.5 million basic and diluted weighted average common shares outstanding. -
Adjusted EBITDA is expected to be in the range of
($49.0) million to($53.0) million .
Please note that First Quarter 2014 and Full Year 2014 Non-GAAP net loss and Adjusted EBITDA guidance excludes the impact of any changes to the treatment of our lease accounting.
Conference Call Details:
In conjunction with this announcement,
About
Non-GAAP Financial Measures
The company uses certain non-GAAP financial measures in this release, including non-GAAP operating loss, net loss, net loss per share, adjusted gross profit, adjusted EBITDA and free cash flow. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position or cash flow, 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 operating loss, net loss and net loss per share exclude stock-based compensation expenses and amortization of acquisition related intangible assets. Adjusted gross profit excludes stock-based compensation, amortization of acquisition-related intangible assets, amortization of software development costs and depreciation. 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. We define free cash flow as cash flow from operations less capital expenditures and capitalized software. 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 might 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, the inclusion of the non-GAAP financial measures should provide consistency in the company's financial reporting.
Non-GAAP financial measures have limitations as an analytical tool.
Safe Harbor Statement
Except for historical information, all of the statements, expectations, and assumptions contained in this press release are forward-looking statements, including specifically our business outlook and guidance for the first quarter and full year 2014. 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: completion of the review of our lease accounting; the immature and volatile market for our products and services; the need to innovate and provide useful products and services; risks related to changing healthcare and other applicable regulations; our ability to compete effectively; our ability to maintain our culture and recruit and retain qualified personnel; privacy, security and other risks associated with our business; and the other risk factors set
forth from time to time in our
CONTACT:Source:Benefitfocus, Inc. 843-284-1052 ext. 6846 pr@benefitfocus.com Investor Relations: ICR forBenefitfocus, Inc. Brian Denyeau 646-277-1251 brian.denyeau@icrinc.com
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