Benefitfocus Announces First Quarter 2015 Financial Results
May 6, 2015
Total revenue of $42.7 million grew 39% year-over-year
Employer revenue of $20.9 million grew 57% year-over-year
CHARLESTON, SC – Benefitfocus, Inc.
(Nasdaq:BNFT), a leading provider of cloud-based benefits software
solutions, today announced its first quarter 2015 financial results.
“Benefitfocus delivered a strong start to 2015 with first quarter
financial results that exceeded the high end of our guidance on both
the top and bottom line,” said Shawn Jenkins, Chief Executive Officer
of Benefitfocus. “There is tremendous activity across the benefits
industry and we are delivering on a number of initiatives that position
the company well to become an increasingly strategic partner for
customers.”
Jenkins added, “During the quarter we achieved a significant milestone
with the introduction of several new product offerings for the employer
market, representing our initial land and expand opportunity in this
fast growing market. We are pleased with initial customer reaction to
these new solutions and believe they provide an additional opportunity
for Benefitfocus to continue generating strong growth and improving
profitability.”
First Quarter 2015 Financial Highlights
Revenue
— Total revenue was $42.7 million, an increase of 39% compared to the first
quarter of 2014.
— Software revenue was $37.8 million, an increase of 32% compared to the
first quarter of 2014.
— Professional services revenue was $4.9 million, an increase of 125%
compared to the first quarter of 2014.
— Employer revenue was $20.9 million, an increase of 57% compared to the
first quarter of 2014.
— Insurance carrier revenue was $21.8 million, an increase of 25% compared
to the first quarter of 2014.
Non-GAAP Net Loss and Adjusted EBITDA
— Non-GAAP net loss was ($12.7) million, compared to a net loss of ($11.8)
million in the first quarter of 2014. Non-GAAP net loss per diluted share
was ($0.48), based on 26.7 million basic and diluted weighted average
common shares outstanding, compared to ($0.48) for the first quarter of
2014, based on 24.5 million basic and diluted weighted average common
shares outstanding.
— Adjusted EBITDA was ($7.8) million, compared to ($8.8) million in the
first quarter of 2014.
— See important disclosures about non-GAAP measures, and a reconciliation
of them to GAAP, below.
Balance Sheet and Cash Flow
— Cash, cash equivalents and marketable securities at March 31, 2015
totaled $107.4 million, compared to $56.2 million at the end of the
fourth quarter of 2014.
First Quarter and Recent Business Highlights
— Ended the quarter with 568 large employer customers, up from 418 at the
end of the year ago period and 553 at the end of the fourth quarter of
2014, and 52 insurance carrier customers, up from 43 at the end of the
year ago period and 43 at the end of the fourth quarter of 2014.
— New employer customer relationships added during the quarter including
Arizona Chemical Company, Chicago Mercantile Exchange, Giant Eagle,
Facchina Group of Companies, Hoss’s Steak & Sea House, McCarthy
Holdings and the H. Lee Moffitt Cancer Center and Research Institute,
among others.
— Launched BENEFITFOCUS(R) Core & Advanced Analytics, which provides
administrators with valuable insight into program performance and costs
by aggregating complex data from disparate sources into a single,
intelligent platform.
— Hosted our annual One Place user conference in Orlando, Florida, which
brought together more than 700 customers, partners and Benefitfocus
associates. Highlights of this year’s One Place included the introduction
of several new products for the employer market, including
BenefitStore(R), eBilling and payment, and Benefit Service Center
— Promoted Ray August from chief operating officer to president and chief
operating officer of Benefitfocus. Shawn Jenkins will continue to serve
as the chief executive officer and will dedicate his focus on product
innovation and the long-range strategy of the company.
— Announced the signing of a reseller agreement with SAP (NYSE:SAP).
Through this agreement, SAP will resell BENEFITFOCUS(R) Marketplace as
the SAP(R) U.S. Benefits Management application by Benefitfocus.
Business Outlook
Based on information available as of May 6, 2015, Benefitfocus is
providing guidance for the second quarter and updating full year 2015
as indicated below.
Second Quarter 2015:
— Total revenue is expected to be in the range of $41.8 million to $42.3
million.
— Non-GAAP net loss is expected to be in the range of ($16.8) million to
($16.3) million, or ($0.59) to ($0.57) per share, based on 28.5 million
basic and diluted weighted average common shares outstanding.
— Adjusted EBITDA is expected to be in the range of ($11.7) million to
($11.2) million.
Full Year 2015:
— Total revenue is expected to be in the range of $172.0 million to $175.0
million.
— Non-GAAP net loss is expected to be in the range of ($62.0) million to
($59.0) million, or ($2.21) to ($2.10) per share, based on 28.1 million
basic and diluted weighted average common shares outstanding.
— Adjusted EBITDA is expected to be in the range of ($38.0) million to
($35.0) million.
Conference Call Details:
In conjunction with this announcement, Benefitfocus will host a
conference call today, May 6, 2015 at 5:00 p.m. Eastern Time to discuss
the company’s financial results. To access this call, dial (855)
233-6991 (domestic) or (317) 586-4497 (international) with conference
ID 24785534. 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.
conference call can also be accessed by dialing (855) 859-2056
(domestic) or (404) 537-3406 (international) until May 13, 2015.
About Benefitfocus
Benefitfocus, Inc. (Nasdaq:BNFT) is a leading provider of cloud-based
benefits software solutions for consumers, employers, insurance
carriers and brokers. Benefitfocus has served more than 25 million
consumers on its platform that consists of an integrated portfolio of
products and services enabling clients to more efficiently shop,
enroll, manage and exchange benefits information. With a user-friendly
interface and consumer-centric design, the Benefitfocus Platform
provides one place for consumers to access all their benefits.
Benefitfocus solutions support the administration of all types of
benefits including core medical, dental and other voluntary benefits
plans as well as wellness programs. For more information, visit
www.benefitfocus.com.
