Benefitfocus announces second quarter 2018 financial results

Total revenue of $60.6 million grew 10% year-over-year

Benefitfocus, Inc. (NASDAQ:BNFT), a leading cloud-based benefits management platform and services provider, announced its second quarter 2018 financial results.

Second Quarter 2018 Financial Highlights

Revenue

• Total revenue was $60.6 million, an increase of 10% compared to the second quarter of 2017.
• Software services revenue was $48.3 million, an increase of 13% compared to the second quarter of 2017.
• Professional services revenue was $12.3 million, a decrease of 2% compared to the second quarter of 2017.
• Employer revenue was $39.4 million, an increase of 17% compared to the second quarter of 2017.
• Carrier revenue was $21.2 million, a decrease of 1% compared to the second quarter of 2017.

Net Loss

• GAAP net loss was ($14.3) million, compared to ($13.9) million in the second quarter of 2017. GAAP net loss per share was ($0.45), based on 31.8 million basic and diluted weighted average common shares outstanding, compared to ($0.45) for the second quarter of 2017, based on 31.1 million basic and diluted weighted average common shares outstanding.

Non-GAAP Net Loss and Adjusted EBITDA

• Non-GAAP net loss was ($7.7) million, compared to ($10.8) million in the second quarter of 2017. Non-GAAP net loss per share was ($0.24), based on 31.8 million basic and diluted weighted average common shares outstanding, compared to ($0.35) for the second quarter of 2017, based on 31.1 million basic and diluted weighted average common shares outstanding.
• Adjusted EBITDA was ($0.6) million, compared to ($3.9) million in the second quarter of 2017.

Balance Sheet

Cash and cash equivalents at June 30, 2018 totaled $53.3 million, compared to $54.8 million at the end of the first quarter of 2018.

Second Quarter and Recent Business Highlights

• We ended the quarter with 997 large employer customers, up from 893 at the end of the prior year period, and 948 at the end of the first quarter of 2018
• We ended the quarter with 6 BenefitsPlace Carriers and 12 BenefitsPlace Specialty Product Suppliers.
• We signed agreements to expand our facilities in both Salt Lake City, Utah and Tulsa, Okla. helping Benefitfocus add new staff to strengthen its relationships with carrier, employer and broker partners, and pursue additional organic growth opportunities.
• We named Ken Haderer as Executive Vice President, Global Operations to help accelerate our platform strategy.  Prior to joining Benefitfocus, Haderer was President of North America at Mercer, a leading, global brokerage and human resources consulting firm.