Benefitfocus Announces Second Quarter 2014 Financial Results
August 11, 2014
Total revenue of $32.3 million grew 33% year-over-year
Employer revenue of $14.3 million grew 59% year-over-year
CHARLESTON, SC – Benefitfocus, Inc. (Nasdaq:BNFT), a leading provider of cloud-based benefits software solutions, announced its second quarter 2014 financial results.
“Benefitfocus reported strong second quarter results from both a revenue and profitability perspective,” said Shawn Jenkins, President and Chief Executive Officer of Benefitfocus. “We believe that employers and carriers are increasingly embracing Benefitfocus’ cloud- based solutions to capitalize on the changes in the benefits market to drive improved employee engagement and cost management.”
Jenkins added, “The transformation of the benefits administration market continues to accelerate. This is enabling employers and carriers to innovate and create new ways to deliver the benefits package that is right for an employee’s individual circumstances. The market is in the early stages of this transformation and we are making investments to position Benefitfocus to capitalize on this multi-billion dollar opportunity.”
Second Quarter 2014 Financial Highlights
Revenue
— Total revenue was $32.3 million, an increase of 33% compared to the second quarter of 2013.
— Software revenue was $29.8 million, an increase of 32% compared to the second quarter of 2013.
— Professional services revenue was $2.5 million, an increase of 50% compared to the second quarter of 2013.
— Employer revenue was $14.3 million, an increase of 59% compared to the second quarter of 2013.
— Insurance carrier revenue was $18.0 million, an increase of 17% compared to the second quarter of 2013.
Loss from Operations
— GAAP operating loss was ($17.4) million, compared to an operating loss of ($9.1) million in the second quarter of 2013.
— Non-GAAP operating loss was ($15.6) million, compared to a loss of ($8.7) million in the second quarter of 2013.
Net Loss
— GAAP net loss was ($18.2) million, compared to ($9.6) million for the second quarter of 2013. GAAP net loss per share was ($0.72), based on 25.2 million basic and diluted weighted average common shares outstanding, compared to a GAAP net loss per share of ($2.00) for the second quarter of 2013, based on 4.8 million basic and diluted weighted average common shares outstanding.
— Non-GAAP net loss was ($15.7) million, compared to ($8.8) million in the second quarter of 2013. Non-GAAP net loss per diluted share was ($0.62) based on 25.2 million basic and diluted weighted average common shares outstanding, compared to ($0.41) for the second quarter of 2013, based on 21.3 million basic and diluted pro-forma weighted average common shares outstanding. These non-GAAP earnings per share calculations assume our convertible preferred stock was converted to common stock for the full second quarter of 2013.
Second Quarter and Recent Business Highlights
— Ended the quarter with 488 large employer customers, up from 348 at the end of the year ago period and 418 at the end of the first quarter of 2014, and 43 insurance carrier customers, consistent with the end of the first quarter of 2014.
— Added new employer customer relationships with Brookdale Senior Living, Forever 21, Hard Rock Cafe, McGraw-Hill Education, Office Depot, CDW and Owens Corning, among others.
— Announced the introduction of the Benefitfocus HR INTOUCH MARKETPLACE(R), The Whole Workforce Edition. This new offering extends Benefitfocus’ core HR INTOUCH platform to support an employer’s entire workforce regardless of an individual employee’s eligibility for company-sponsored coverage and supports enrollment in voluntary benefits employee-specific enrollment workflows for full-time, part-time, variable workers and retirees.
— Andy Howell, the company’s current Chief Operating Officer, has been appointed to the position of Chief Commercial Officer with responsibility for all sales and marketing functions. The company also appointed Ray August to the position of Chief Operating Officer. Previously, Mr. August was the General Manager of the Financial Services division of Computer Sciences Corporation.
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 23 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.
