bnft-8k_20191106.htm

 

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 6, 2019

 

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))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange

on which registered

Common Stock, $0.001 Par Value

 

BNFT

 

Nasdaq Global Market

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 6, 2019, Benefitfocus, Inc. issued a press release announcing its operating results for the quarter ended September 30, 2019.  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 6, 2019


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 6, 2019

 

/s/ Stephen M. Swad

 

 

Stephen M. Swad

 

 

Chief Financial Officer

(Principal financial and accounting officer)

 

bnft-ex991_7.htm

 

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 2019 Financial Results

                Driven by its leading AI-powered platform, Benefitfocus grew total revenue 17% year-over-year

 

Charleston, S.C. – November 6, 2019 – Benefitfocus, Inc. (NASDAQ: BNFT), a leading cloud-based benefits management platform and services provider, today announced its third quarter 2019 financial results. Recent highlights include:  

 

Grew net benefit eligible lives to 16.8 million at the end of the third quarter, up from 16.5 million at the end of the prior quarter and 13.2 million at the end of the prior year period.

 

Extended platform to support growing gig economy and signed first customer exclusively serving independent contractors.

 

Added over 250 premier brokers, bringing our total premier broker count to over 700.

 

Announced MarketPlace for Carriers that provides end-to-end business rating, quoting, billing and payments.

 

“Benefitfocus delivered strong third quarter results and continues to make solid progress towards achieving our long-term goals,” said Ray August, President and Chief Executive Officer of Benefitfocus.

 

August added, “The benefits industry is undergoing a fundamental change and Benefitfocus is at the forefront helping to transform its future. For more than 25 million Americans, our platform delivers a rich experience as a result of providing enhanced consumer education and engagement with their benefits. With our considerable data assets we are transforming how benefits are bought, sold and used in the United States.”

 

Third Quarter 2019 Financial Highlights

Revenue

 

Total revenue was $71.7 million, an increase of 17% compared to the third quarter of 2018.

 

Software services revenue was $54.2 million, an increase of 16% compared to the third quarter of 2018.

 

Professional services revenue was $17.5 million, an increase of 23% compared to the third quarter of 2018.

Net Loss

 

GAAP net loss was ($12.6) million, compared to ($11.6) million in the third quarter of 2018. GAAP net loss per share was ($0.38), based on 32.7 million basic and diluted weighted average common shares outstanding, compared to ($0.36) for the third quarter of 2018, based on 31.9 million basic and diluted weighted average common shares outstanding.

Non-GAAP Net Loss and Adjusted EBITDA

 

Non-GAAP net loss was ($7.5) million, compared to ($7.2) million in the third quarter of 2018. Non-GAAP net loss per share was ($0.23), based on 32.7 million basic and diluted weighted average common shares outstanding, compared to ($0.23) for the third quarter of 2018, based on 31.9 million basic and diluted weighted average common shares outstanding.

 

Adjusted EBITDA was $2.9 million, compared to ($0.0) million in the third quarter of 2018.


 

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

Balance Sheet

 

Cash and cash equivalents at September 30, 2019 totaled $130.7 million, compared to $138.4 million at the end of the second quarter of 2019.  

Updated Business Outlook

Based on information available as of November 6, 2019, Benefitfocus is providing guidance for the fourth quarter and updated its full year 2019 as indicated below.

Fourth Quarter 2019:

 

Total revenue is expected to be in the range of $83.5 million to $91.5 million.

 

Non-GAAP net (loss)/income is expected to be in the range of ($4.8) million to $0.2 million, or ($0.15) to $0.01 per share, based on 32.8 million basic (for net loss) and 33.2 million diluted (for net income) weighted average common shares outstanding.

 

Adjusted EBITDA is expected to be in the range of $5.4 million to $10.4 million.

Full Year 2019:

 

Total revenue is expected to be in the range of $292.0 million to $300.0 million.

 

Non-GAAP net loss is expected to be in the range of ($29.0) million to ($24.0) million, or ($0.89) to ($0.74) per share, based on 32.5 million basic and diluted weighted average common shares outstanding.

 

Adjusted EBITDA is expected to be in the range of $12.0 million to $17.0 million.

Management has not reconciled forward-looking non-GAAP net loss/income and Adjusted EBITDA to their most directly comparable GAAP measure of GAAP net loss.  This is because we cannot predict with reasonable certainty the ultimate outcome of the various necessary GAAP components of such reconciliations, including, for example, those related to compensation, acquisition transactions and integration, or others that may arise during the year, without unreasonable effort. These components and other factors could materially impact the amount of the future directly comparable GAAP measures, which may differ significantly from their non-GAAP counterparts. See below for additional important disclosures regarding our non-GAAP financial measures.

Conference Call Details:

In conjunction with this announcement, Benefitfocus will host a conference call today, November 6, 2019, at 5:00 p.m. Eastern Time to discuss the company’s financial results. To access this call, dial (877) 407-9208 (domestic) or (201) 493-6784 (international). A live webcast, as well as the replay, of the conference call will be available on the Investor Relations page of the company’s website at http://investor.benefitfocus.com/. After the conference call, a replay will be available until November 13, 2019, and can be accessed by dialing (844) 512-2921 (domestic) or (412) 317-6671 (international) with passcode 13695735.

About Benefitfocus

Benefitfocus (NASDAQ: BNFT) unifies the entire U.S. benefits industry on a single technology platform to protect consumers' health, wealth, property and lifestyle. Our powerful cloud-based software, data-driven insights and thoughtfully-designed services, enable employers, insurance brokers, carriers and suppliers to simplify the complexity of benefits administration and deliver a world-class benefits experience. 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/income, net loss/income 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/income and net loss/income per common share exclude stock-based compensation expenses, amortization of acquisition-related intangible assets, transaction and acquisition-related 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, transaction and acquisition-related costs expensed, 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 GAAP profitability; fluctuations in our financial results; the immature and volatile market for our products and services; risks related to changing healthcare and other applicable regulations; risks associated with acquisitions; our ability to maintain our culture, recruit and retain qualified personnel and effectively expand our sales force; cyber-security risks;  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-filings 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.

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,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Revenue

 

$

71,665

 

 

$

61,006

 

 

$

208,543

 

 

$

183,950

 

Cost of revenue (1)(2)(3)

 

 

35,588

 

 

 

31,740

 

 

 

101,242

 

 

 

93,864

 

Gross profit

 

 

36,077

 

 

 

29,266

 

 

 

107,301

 

 

 

90,086

 

Operating expenses:(1)(2)(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

18,527

 

 

 

17,661

 

 

 

57,464

 

 

 

55,978

 

Research and development

 

 

14,088

 

 

 

10,676

 

 

 

41,639

 

 

 

34,827

 

General and administrative

 

 

10,772

 

 

 

9,263

 

 

 

34,353

 

 

 

29,343

 

Total operating expenses

 

 

43,387

 

 

 

37,600

 

 

 

133,456

 

 

 

120,148

 

Loss from operations

 

 

(7,310

)

 

 

(8,334

)

 

 

(26,155

)

 

 

(30,062

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

673

 

 

 

73

 

 

 

2,095

 

 

 

199

 

Interest expense

 

 

(5,926

)

 

 

(1,458

)

 

 

(17,577

)

 

 

(4,190

)

Interest expense on building lease financing obligations

 

 

 

 

 

(1,868

)

 

 

 

 

 

(5,601

)

Other (expense) income

 

 

3

 

 

 

2

 

 

 

(61

)

 

 

15

 

Total other expense, net

 

 

(5,250

)

 

 

(3,251

)

 

 

(15,543

)

 

 

(9,577

)

Loss before income taxes

 

 

(12,560

)

 

 

(11,585

)

 

 

(41,698

)

 

 

(39,639

)

Income tax expense

 

 

17

 

 

 

13

 

 

 

26

 

 

 

22

 

Net loss

 

$

(12,577

)

 

$

(11,598

)

 

$

(41,724

)

 

$

(39,661

)

Comprehensive loss

 

$

(12,577

)

 

$

(11,598

)

 

$

(41,724

)

 

$

(39,661

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.38

)

 

$

(0.36

)

 

$

(1.29

)

 

$

(1.25

)

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

32,703,723

 

 

 

31,883,029

 

 

 

32,460,494

 

 

 

31,678,360

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

798

 

 

$

542

 

 

$

2,388

 

 

$

2,153

 

Sales and marketing

 

 

923

 

 

 

759

 

 

 

2,597

 

 

 

2,970

 

Research and development

 

 

690

 

 

 

494

 

 

 

2,600

 

 

 

2,103

 

General and administrative

 

 

2,004

 

 

 

1,552

 

 

 

6,916

 

 

 

5,120

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

305

 

 

$

12

 

 

$

712

 

 

$

81

 

Sales and marketing

 

 

97

 

 

 

4

 

 

 

246

 

 

 

31

 

Research and development

 

 

118

 

 

 

4

 

 

 

289

 

 

 

27

 

General and administrative

 

 

49

 

 

 

2

 

 

 

117

 

 

 

11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3) Transaction and acquisition-related costs expensed included in above line items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

$

3

 

 

$

 

 

$

1,005

 

 

$

257

 

 



 

Benefitfocus, Inc.

Unaudited Consolidated Balance Sheets

(in thousands, except share and per share data)

 

 

As of

September 30,

2019

 

 

As of

December 31,

2018

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

130,699

 

 

$

190,928

 

Accounts receivable, net

 

 

34,672

 

 

 

21,077

 

Contract, prepaid and other current assets

 

 

15,312

 

 

 

16,667

 

Total current assets

 

 

180,683

 

 

 

228,672

 

Property and equipment, net

 

 

28,689

 

 

 

69,965

 

Financing lease right-of-use assets

 

 

80,665

 

 

 

 

Operating lease right-of-use assets

 

 

1,868

 

 

 

 

Intangible assets, net

 

 

13,236

 

 

 

 

Goodwill

 

 

12,857

 

 

 

1,634

 

Deferred contract costs and other non-current assets

 

 

10,150

 

 

 

13,668

 

Total assets

 

$

328,148

 

 

$

313,939

 

Liabilities and stockholders' deficit

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

8,552

 

 

$

8,687

 

Accrued expenses

 

 

10,333

 

 

 

11,461

 

Accrued compensation and benefits

 

 

13,561

 

 

 

17,269

 

Deferred revenue, current portion

 

 

33,911

 

 

 

36,540

 

Lease liabilities and financing obligations, current portion

 

 

7,022

 

 

 

4,486

 

Total current liabilities

 

 

73,379

 

 

 

78,443

 

Deferred revenue, net of current portion

 

 

7,216

 

 

 

9,323

 

Convertible senior notes

 

 

185,069

 

 

 

176,692

 

Lease liabilities and financing obligations, net current portion

 

 

89,438

 

 

 

57,116

 

Other non-current liabilities

 

 

115

 

 

 

2,575

 

Total liabilities

 

 

355,217

 

 

 

324,149

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Stockholders' deficit:

 

 

 

 

 

 

 

 

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

   no shares issued and outstanding at September 30, 2019

   and December 31, 2018

 

 

 

 

 

 

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

   32,710,032 and 32,017,773 shares issued and outstanding

   at September 30, 2019 and December 31, 2018, respectively

 

 

33

 

 

 

32

 

Additional paid-in capital

 

 

420,808

 

 

 

403,631

 

Accumulated deficit

 

 

(447,910

)

 

 

(413,873

)

Total stockholders' deficit

 

 

(27,069

)

 

 

(10,210

)

Total liabilities and stockholders' deficit

 

$

328,148

 

 

$

313,939

 

 

 



 

Benefitfocus, Inc.

Unaudited Consolidated Statements of Cash Flows

(in thousands)

 

 

Nine Months Ended

September 30,

 

 

 

2019

 

 

2018

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

Net loss

 

$

(41,724

)

 

$

(39,661

)

Adjustments to reconcile net loss to net cash and cash

   equivalents used in operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

16,629

 

 

 

11,912

 

Stock-based compensation expense

 

 

14,501

 

 

 

12,346

 

Accretion of interest on convertible senior notes

 

 

8,377

 

 

 

 

Interest accrual on finance lease liabilities

 

 

25

 

 

 

 

Interest accrual on financing obligations (prior to adoption of ASC 842)

 

 

 

 

 

5,639

 

Rent payments in excess of expense

 

 

(6

)

 

 

 

Provision for doubtful accounts

 

 

108

 

 

 

364

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

(12,791

)

 

 

2,103

 

Contract, prepaid and other current assets

 

 

1,282

 

 

 

5,179

 

Deferred costs and other non-current assets

 

 

3,746

 

 

 

2,590

 

Accounts payable and accrued expenses

 

 

(642

)

 

 

4,385

 

Accrued compensation and benefits

 

 

(1,524

)

 

 

(1,068

)

Deferred revenue

 

 

(11,427

)

 

 

(7,443

)

Other non-current liabilities

 

 

(69

)

 

 

(328

)

Net cash and cash equivalents used in operating activities

 

 

(23,515

)

 

 

(3,982

)

Cash flows from investing activities

 

 

 

 

 

 

 

 

Business combination, net of cash acquired

 

 

(20,914

)

 

 

 

Purchases of property and equipment

 

 

(10,604

)

 

 

(5,855

)

Net cash and cash equivalents used in investing activities

 

 

(31,518

)

 

 

(5,855

)

Cash flows from financing activities

 

 

 

 

 

 

 

 

Draws on revolving line of credit

 

 

 

 

 

97,000

 

Payments on revolving line of credit

 

 

 

 

 

(84,000

)

Payments of debt issuance costs

 

 

(357

)

 

 

 

Proceeds from exercises of stock options and ESPP

 

 

305

 

 

 

462

 

Payments on capital lease and financing obligations

 

 

(1,032

)

 

 

(7,895

)

Payments of principal on finance lease liabilities

 

 

(4,112

)

 

 

 

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

 

 

(5,196

)

 

 

5,567

 

Net decrease in cash and cash equivalents

 

 

(60,229

)

 

 

(4,270

)

Cash and cash equivalents, beginning of period

 

 

190,928

 

 

 

55,335

 

Cash and cash equivalents, end of period

 

$

130,699

 

 

$

51,065

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of non-cash investing and financing activities

 

 

 

 

 

 

 

 

Property and equipment purchases in accounts payable and accrued expenses

 

$

 

 

$

83

 

Property and equipment purchased with financing and capital lease obligations (prior to adoption of ASC 842)

 

$

 

 

$

3,739

 

Post contract support purchased with financing obligations

 

$

 

 

$

275

 

 



 

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,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Reconciliation from Gross Profit to Non-GAAP Gross Profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

$

36,077

 

 

$

29,266

 

 

$

107,301

 

 

$

90,086

 

Amortization of acquired intangible assets

 

 

305

 

 

 

12

 

 

 

712

 

 

 

81

 

Stock-based compensation expense

 

 

798

 

 

 

542

 

 

 

2,388

 

 

 

2,153

 

Total net adjustments

 

 

1,103

 

 

 

554

 

 

 

3,100

 

 

 

2,234

 

Non-GAAP gross profit

 

$

37,180

 

 

$

29,820

 

 

$

110,401

 

 

$

92,320

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from Operating Loss to Non-GAAP Operating Loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating loss

 

$

(7,310

)

 

$

(8,334

)

 

$

(26,155

)

 

$

(30,062

)

Amortization of acquired intangible assets

 

 

569

 

 

 

22

 

 

 

1,364

 

 

 

150

 

Stock-based compensation expense

 

 

4,415

 

 

 

3,347

 

 

 

14,501

 

 

 

12,346

 

Transaction and acquisition-related costs expensed

 

 

3

 

 

 

 

 

 

1,005

 

 

 

257

 

Costs not core to our business

 

 

63

 

 

 

1,027

 

 

 

649

 

 

 

3,922

 

Total net adjustments

 

 

5,050

 

 

 

4,396

 

 

 

17,519

 

 

 

16,675

 

Non-GAAP operating loss

 

$

(2,260

)

 

$

(3,938

)

 

$

(8,636

)

 

$

(13,387

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from Net Loss to Adjusted EBITDA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(12,577

)

 

$

(11,598

)

 

$

(41,724

)

 

$

(39,661

)

Depreciation

 

 

3,848

 

 

 

2,888

 

 

 

11,505

 

 

 

8,864

 

Amortization of software development costs

 

 

1,263

 

 

 

1,045

 

 

 

3,760

 

 

 

2,898

 

Amortization of acquired intangible assets

 

 

569

 

 

 

22

 

 

 

1,364

 

 

 

150

 

Interest income

 

 

(673

)

 

 

(73

)

 

 

(2,095

)

 

 

(199

)

Interest expense

 

 

5,926

 

 

 

1,458

 

 

 

17,577

 

 

 

4,190

 

Interest expense on building lease financing obligations (prior to adoption of ASC 842)

 

 

 

 

 

1,868

 

 

 

 

 

 

5,601

 

Income tax expense

 

 

17

 

 

 

13

 

 

 

26

 

 

 

22

 

Stock-based compensation expense

 

 

4,415

 

 

 

3,347

 

 

 

14,501

 

 

 

12,346

 

Transaction and acquisition-related costs expensed

 

 

3

 

 

 

 

 

 

1,005

 

 

 

257

 

Costs not core to our business

 

 

63

 

 

 

1,027

 

 

 

649

 

 

 

3,922

 

Total net adjustments

 

 

15,431

 

 

 

11,595

 

 

 

48,292

 

 

 

38,051

 

Adjusted EBITDA

 

$

2,854

 

 

$

(3

)

 

$

6,568

 

 

$

(1,610

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from Net Loss to Non-GAAP Net Loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(12,577

)

 

$

(11,598

)

 

$

(41,724

)

 

$

(39,661

)

Amortization of acquired intangible assets

 

 

569

 

 

 

22

 

 

 

1,364

 

 

 

150

 

Stock-based compensation expense

 

 

4,415

 

 

 

3,347

 

 

 

14,501

 

 

 

12,346

 

Transaction and acquisition-related costs expensed

 

 

3

 

 

 

 

 

 

1,005

 

 

 

257

 

Costs not core to our business

 

 

63

 

 

 

1,027

 

 

 

649

 

 

 

3,922

 

Total net adjustments

 

 

5,050

 

 

 

4,396

 

 

 

17,519

 

 

 

16,675

 

Non-GAAP net loss

 

$

(7,527

)

 

$

(7,202

)

 

$

(24,205

)

 

$

(22,986

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calculation of Non-GAAP Earnings Per Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net loss

 

$

(7,527

)

 

$

(7,202

)

 

$

(24,205

)

 

$

(22,986

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - basic and diluted

 

 

32,703,723

 

 

 

31,883,029

 

 

 

32,460,494

 

 

 

31,678,360

 

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

 

 

32,703,723

 

 

 

31,883,029

 

 

 

32,460,494

 

 

 

31,678,360

 

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

 

$

(0.23

)

 

$

(0.23

)

 

$

(0.75

)

 

$

(0.73

)