8-K
0001576169false00015761692022-11-072022-11-07

 

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 07, 2022

 

 

BENEFITFOCUS, INC.

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware

001-36061

46-2346314

(State or Other Jurisdiction
of Incorporation)

(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

 

The 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 7, 2022, Benefitfocus, Inc. (the “Company”) issued a press release announcing its operating results for the quarter ended September 30, 2022. 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 (the “Securities Act”) 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 7, 2022

104 Cover Page Interactive Data File (embedded within the Inline XBRL document).


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 7, 2022

 

/s/ Alpana Wegner

 

 

Alpana Wegner

 

 

Chief Financial Officer

(Principal financial and accounting officer)

 


EX-99.1

 

Exhibit 99.1

Media Contact:

843-981-8898

pr@benefitfocus.com

 

Investor Relations:

Doug Kuckelman

843-790-7460

ir@benefitfocus.com

https://cdn.kscope.io/7a48d99700e4061d16f02b7fc3ca510c-img42695435_0.jpg 

 

 

 

Benefitfocus Announces Third Quarter 2022 Financial Results

 

 

Charleston, S.C. – November 7, 2022 – Benefitfocus, Inc. (NASDAQ: BNFT), an industry-leading cloud-based benefits administration technology company that serves employers, health plans and brokers, today announced its third quarter 2022 financial results:

 

Financial Highlights for the Third Quarter 2022:

Revenue of $56.2 million was within the guidance range of $55 million to $57 million.
Adjusted EBITDA of $5.7 million was at the high end of the guidance range of $4 million to $6 million.
GAAP net loss available to common stockholders was ($8.6) million, compared to ($19.7) million in the third quarter of 2021.
GAAP EPS was ($0.25) in the third quarter of 2022 and non-GAAP EPS was ($0.12).

 

Operational Highlights for the Third Quarter 2022:

Developed Advanced Engagement Services – a personalized, action-oriented communications solution that helps employers and health plans create a more connected and engaging benefits experience for employees.
Named as a 2022 BenefitsPRO Luminaries honoree in the Humanizing Benefits category. The BenefitsPRO Luminaries awards, which are determined by a panel of industry experts, celebrate top benefits professionals and organizations that strive to transform the benefits business and set an example within the industry.
Successfully established a $140 million senior secured credit facility and repurchased the majority of our outstanding convertible senior notes.

 

“I want to thank and recognize our team for their efforts and accomplishments during the third quarter. Our team continued to make progress against our plan – delivering on our financial commitments as well as building on the momentum underway with key client wins and strong improvement in sales activity. Additionally, our team rolled out new, innovative products for our customers and delivered our solutions with service excellence,” said Benefitfocus President and Chief Executive Officer, Matt Levin.

 

Third Quarter 2022 Financial Highlights

Revenue

Total revenue was $56.2 million, down approximately 9% compared to the third quarter of 2021.
Software services, which is comprised of both subscription and platform revenue, was $46.9 million, down 8% compared to the third quarter of 2021.
o
Subscription revenue was $41.2 million, down 8% compared to the third quarter of 2021.
o
Platform revenue was $5.6 million, down 8% compared to the third quarter of 2021.
Professional services revenue was $9.3 million, down 16% compared to the third quarter of 2021.

 

Net Loss

GAAP net loss was ($7.0) million, compared to ($18.1) million in the third quarter of 2021. GAAP net loss per share was ($0.25), based on ($8.6) million net loss available to common stockholders and 34.3 million basic and diluted

 

weighted average common shares outstanding. This compares to GAAP net loss per share of ($0.59) for the third quarter of 2021, based on ($19.7) million net loss available to common stockholders and 33.4 million basic and diluted weighted average common shares outstanding.

 

Non-GAAP Net Loss, Adjusted EBITDA and Free Cash Flow

Non-GAAP net loss available to common stockholders was ($4.0) million for the third quarter of 2022, compared to ($6.3) million in the third quarter of 2021. Non-GAAP net loss per share was ($0.12) based on both 34.3 million basic and diluted weighted average common shares outstanding. This compares to non-GAAP net loss of ($0.19) in the third quarter of 2021, based on 33.4 million for both basic and diluted weighted average common shares outstanding.
Adjusted EBITDA was $5.7 million, compared to $6.7 million in the third quarter of 2021.
Cash provided by operations was $6.0 million and free cash flow was $7.8 million, compared to cash from operations of $5.6 million and $6.9 million of free cash flow in the third quarter of 2021.

 

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

 

Balance Sheet

Cash and cash equivalents at September 30, 2022, totaled $55.1 million compared to $51.5 million at the end of second quarter 2022.

 

Recent Developments

On November 1, 2022, we issued a joint press release with Voya Financial, Inc. (“Voya”) announcing that the companies have entered into a definitive agreement (the “Merger Agreement”) for Voya to acquire Benefitfocus, subject to the terms and conditions set forth in the Merger Agreement.

 

Details regarding the Merger Agreement and the transactions contemplated by the Merger Agreement can be found in our amended Form 8-K filed with the SEC on November 4, 2022 and the joint press release issued by the Company and Voya on November 1, 2022.

 

Business Outlook

As a result of the proposed transaction with Voya, Benefitfocus is suspending financial guidance for the fourth quarter and full year 2022. As previously announced, Benefitfocus has cancelled its earnings conference call for the quarter ended September 30, 2022, that had originally been scheduled for November 7, 2022, at 5:00 p.m. ET.

 

About Benefitfocus

Benefitfocus (NASDAQ: BNFT) is a cloud-based benefits administration technology company committed to helping our customers, and the people they serve, get the most out of their health care and benefit programs. Through exceptional service and innovative SaaS solutions, we aim to be the safest set of hands for our customers helping to simplify the complexity of benefits administration while delivering an experience that engages people and unlocks the potential for better health and improved outcomes. Our mission is simple: to improve lives with benefits.

 

Non-GAAP Financial Measures

The company uses certain non-GAAP financial measures in this release, including non-GAAP gross profit, operating income/loss, net loss/income, net loss/income per common share, adjusted EBITDA and free cash flow. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance or financial position that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP.

 

Non-GAAP gross profit, operating income/loss, net loss/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, expense related to the impairment of goodwill, intangible assets and long-lived assets, gain or loss on extinguishment of debt, change in fair value of contingently returnable consideration and costs not core to our business.


 

We define adjusted EBITDA as net loss before net interest, taxes, and depreciation and amortization expense, adjusted to eliminate stock-based compensation expense; transaction and acquisition-related costs expensed; restructuring costs; impairment of goodwill, intangible assets and long-lived assets; gain or loss on extinguishment of debt; other costs not core to our business; loss on settlement of lawsuits; and changes in fair value of contingently returnable consideration. We define free cash flow as cash provided by or used in operating activities less capital expenditures, adjusted to eliminate cash paid for restructuring costs. 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 need to increase sales and achieve consistent GAAP profitability; fluctuations in our financial results; our ability to maintain our culture and retain qualified personnel; our ability to compete effectively and implement our growth strategy; our reliance on channel relationships; market developments and opportunities; the need to innovate and provide useful products and services; risks related to changing healthcare and other applicable regulations; the immature and volatile nature of the market for our products and services; privacy; security and other risks associated with our business; volatility and uncertainty in the global economy and financial markets in light of the evolving COVID-19 pandemic and war in Ukraine; 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,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenue

 

$

56,190

 

 

$

62,026

 

 

$

174,002

 

 

$

187,993

 

Cost of revenue(1)(2)

 

 

29,864

 

 

 

31,247

 

 

 

88,845

 

 

 

87,870

 

Gross profit

 

 

26,326

 

 

 

30,779

 

 

 

85,157

 

 

 

100,123

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

10,029

 

 

 

12,669

 

 

 

30,596

 

 

 

34,481

 

Research and development

 

 

12,376

 

 

 

11,062

 

 

 

35,782

 

 

 

32,997

 

General and administrative

 

 

10,455

 

 

 

12,156

 

 

 

33,261

 

 

 

35,589

 

Impairment of lease right-of-use assets

 

 

 

 

 

 

 

 

1,769

 

 

 

4,003

 

Change in fair value of contingently returnable consideration

 

 

 

 

 

 

 

 

(719

)

 

 

 

Restructuring costs

 

 

 

 

 

 

 

 

1,006

 

 

 

4,127

 

Total operating expenses

 

 

32,860

 

 

 

35,887

 

 

 

101,695

 

 

 

111,197

 

Loss from operations

 

 

(6,534

)

 

 

(5,108

)

 

 

(16,538

)

 

 

(11,074

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

223

 

 

 

52

 

 

 

307

 

 

 

163

 

Interest expense

 

 

(2,918

)

 

 

(5,556

)

 

 

(7,876

)

 

 

(16,757

)

Gain (loss) on repurchase of convertible senior notes

 

 

1,930

 

 

 

(7,520

)

 

 

1,930

 

 

 

(7,520

)

Other income

 

 

362

 

 

 

120

 

 

 

844

 

 

 

142

 

Total other expense, net

 

 

(403

)

 

 

(12,904

)

 

 

(4,795

)

 

 

(23,972

)

Loss before income taxes

 

 

(6,937

)

 

 

(18,012

)

 

 

(21,333

)

 

 

(35,046

)

Income tax expense

 

 

49

 

 

 

42

 

 

 

94

 

 

 

125

 

Net loss

 

 

(6,986

)

 

 

(18,054

)

 

 

(21,427

)

 

 

(35,171

)

Preferred dividends

 

 

(1,600

)

 

 

(1,600

)

 

 

(4,800

)

 

 

(4,800

)

Net loss available to common stockholders

 

$

(8,586

)

 

$

(19,654

)

 

$

(26,227

)

 

$

(39,971

)

Comprehensive loss

 

$

(6,986

)

 

$

(18,054

)

 

$

(21,427

)

 

$

(35,171

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.25

)

 

$

(0.59

)

 

$

(0.77

)

 

$

(1.21

)

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

34,279,464

 

 

 

33,354,624

 

 

 

33,937,778

 

 

 

32,978,394

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

648

 

 

$

511

 

 

$

1,852

 

 

$

1,475

 

Sales and marketing

 

 

916

 

 

 

963

 

 

 

2,662

 

 

 

2,470

 

Research and development

 

 

752

 

 

 

589

 

 

 

1,766

 

 

 

1,210

 

General and administrative

 

 

1,902

 

 

 

2,532

 

 

 

4,442

 

 

 

5,339

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

610

 

 

$

332

 

 

$

1,842

 

 

$

1,005

 

Sales and marketing

 

 

127

 

 

 

78

 

 

 

400

 

 

 

231

 

Research and development

 

 

236

 

 

 

110

 

 

 

685

 

 

 

336

 

General and administrative

 

 

100

 

 

 

48

 

 

 

292

 

 

 

133

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

$

19

 

 

$

80

 

 

$

115

 

 

$

240

 

 

 


 

Benefitfocus, Inc.

Unaudited Consolidated Balance Sheets

(in thousands, except share and per share data)

 

 

As of

September 30,

2022

 

 

As of

December 31,

2021

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

55,124

 

 

$

31,001

 

Marketable securities

 

 

 

 

 

37,049

 

Accounts receivable, net

 

 

27,598

 

 

 

16,491

 

Contract, prepaid and other current assets

 

 

18,307

 

 

 

27,615

 

Total current assets

 

 

101,029

 

 

 

112,156

 

Property and equipment, net

 

 

24,728

 

 

 

27,202

 

Financing lease right-of-use assets

 

 

48,445

 

 

 

56,474

 

Operating lease right-of-use assets

 

 

615

 

 

 

774

 

Intangible assets, net

 

 

17,915

 

 

 

21,134

 

Goodwill

 

 

34,237

 

 

 

34,237

 

Deferred contract costs and other non-current assets

 

 

6,744

 

 

 

8,864

 

Total assets

 

$

233,713

 

 

$

260,841

 

Liabilities, redeemable preferred stock and stockholders' deficit

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

6,064

 

 

$

10,565

 

Accrued expenses

 

 

7,552

 

 

 

9,451

 

Accrued compensation and benefits

 

 

15,208

 

 

 

16,411

 

Deferred revenue, current portion

 

 

30,443

 

 

 

27,756

 

Long-term debt, current portion

 

 

5,186

 

 

 

 

Lease liabilities and financing obligations, current portion

 

 

6,607

 

 

 

7,378

 

Contingent consideration

 

 

 

 

 

675

 

Total current liabilities

 

 

71,060

 

 

 

72,236

 

Deferred revenue, net of current portion

 

 

2,364

 

 

 

2,377

 

Convertible senior notes

 

 

6,836

 

 

 

107,281

 

Long-term debt, net of current portion

 

 

105,349

 

 

 

 

Lease liabilities and financing obligations, net of current portion

 

 

72,581

 

 

 

75,758

 

Other non-current liabilities

 

 

392

 

 

 

313

 

Total liabilities

 

 

258,582

 

 

 

257,965

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Redeemable preferred stock:

 

 

 

 

 

 

 

 

Series A preferred stock, par value $0.001, 5,000,000 shares

  authorized, 1,777,778 and 1,777,778 shares issued and outstanding

  at September 30, 2022 and December 31, 2021, respectively,

  liquidation preference $45 per share as of September 30, 2022 and December 31, 2021, respectively

 

 

79,193

 

 

 

79,193

 

Stockholders' deficit:

 

 

 

 

 

 

 

 

Common stock, par value $0.001, 95,000,000 shares authorized,

   34,392,269 and 33,460,545 issued and outstanding at September 30, 2022 and December 31, 2021, respectively

 

 

34

 

 

 

33

 

Additional paid-in capital

 

 

384,886

 

 

 

431,874

 

Accumulated deficit

 

 

(488,982

)

 

 

(508,224

)

Total stockholders' deficit

 

 

(104,062

)

 

 

(76,317

)

Total liabilities, redeemable preferred stock and stockholders' deficit

 

$

233,713

 

 

$

260,841

 

 


 

Benefitfocus, Inc.

Unaudited Consolidated Statements of Cash Flows

(in thousands)

 

 

Nine Months Ended

September 30,

 

 

 

2022

 

 

2021

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

Net loss

 

$

(21,427

)

 

$

(35,171

)

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

19,955

 

 

 

18,976

 

Stock-based compensation expense

 

 

10,722

 

 

 

10,494

 

Accretion of interest on convertible senior notes

 

 

507

 

 

 

8,590

 

Interest accrual on finance lease liabilities

 

 

19

 

 

 

3,259

 

Rent expense less than payments

 

 

(82

)

 

 

(41

)

Change in fair value of contingently returnable assets

 

 

(719

)

 

 

 

Non-cash accretion income from investments

 

 

29

 

 

 

741

 

Amortization of debt issuance costs

 

 

58

 

 

 

 

Impairment or loss on disposal of right-of-use assets and property and equipment

 

 

1,769

 

 

 

4,074

 

(Gain) loss on extinguishment of debt

 

 

(1,930

)

 

 

7,520

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

(11,107

)

 

 

1,872

 

Accrued interest on investments

 

 

284

 

 

 

161

 

Contract, prepaid and other current assets

 

 

9,591

 

 

 

4,009

 

Deferred costs and other non-current assets

 

 

2,493

 

 

 

1,238

 

Accounts payable and accrued expenses

 

 

(5,696

)

 

 

6,960

 

Accrued compensation and benefits

 

 

(1,203

)

 

 

(2,136

)

Deferred revenue

 

 

2,674

 

 

 

(3,441

)

Other non-current liabilities

 

 

80

 

 

 

191

 

Net cash provided by operating activities

 

 

6,017

 

 

 

27,296

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

Purchases of investments held-to-maturity

 

 

 

 

 

(91,361

)

Proceeds from short-term investments held-to-maturity

 

 

 

 

 

100,588

 

Maturities of investments available-for-sale

 

 

22,045

 

 

 

 

Sales of investments available-for-sale

 

 

14,691

 

 

 

 

Business combination, net of cash acquired

 

 

(500

)

 

 

 

Purchases of property and equipment

 

 

(6,116

)

 

 

(7,454

)

Net cash provided by investing activities

 

 

30,120

 

 

 

1,773

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

Proceeds from long-term debt

 

 

112,000

 

 

 

 

Repurchase of convertible senior notes

 

 

(111,628

)

 

 

(98,678

)

Payments of debt issuance costs

 

 

(1,841

)

 

 

 

Cancellation of convertible senior notes capped call hedge

 

 

6

 

 

 

98

 

Payments of preferred dividends

 

 

(4,800

)

 

 

(4,800

)

Proceeds from contingently returnable consideration

 

 

879

 

 

 

 

Payments of contingent consideration

 

 

(675

)

 

 

 

Proceeds from exercises of stock options and ESPP

 

 

58

 

 

 

322

 

Payments on financing obligations

 

 

(327

)

 

 

(226

)

Payments of principal on finance lease liabilities

 

 

(5,686

)

 

 

(3,902

)

Net cash used in financing activities

 

 

(12,014

)

 

 

(107,186

)

Net increase (decrease) in cash and cash equivalents

 

 

24,123

 

 

 

(78,117

)

Cash and cash equivalents, beginning of period

 

 

31,001

 

 

 

90,706

 

Cash and cash equivalents, end of period

 

$

55,124

 

 

$

12,589

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of non-cash investing and financing activities

 

 

 

 

 

 

 

 

Property and equipment purchases in accounts payable and accrued expenses

 

$

 

 

$

945

 

Debt issuance costs included in accounts payable and accrued expenses

 

$

53

 

 

$

 

 

 


 

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,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Reconciliation from Gross Profit to Non-GAAP Gross Profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

$

26,326

 

 

$

30,779

 

 

$

85,157

 

 

$

100,123

 

Amortization of acquired intangible assets

 

 

610

 

 

 

332

 

 

 

1,842

 

 

 

1,005

 

Stock-based compensation expense

 

 

648

 

 

 

511

 

 

 

1,852

 

 

 

1,475

 

Total net adjustments

 

 

1,258

 

 

 

843

 

 

 

3,694

 

 

 

2,480

 

Non-GAAP gross profit

 

$

27,584

 

 

$

31,622

 

 

$

88,851

 

 

$

102,603