August 6, 2015

Benefitfocus Reports Increases In Revenue, Customers In 2nd Quarter

Liz Segrist  /  Charleston Regional Business Journal

Benefitfocus nabbed 94 new large-employer customers during the second quarter for a total of 662, up from 488 a year ago, CEO Shawn Jenkins said during the second-quarter earnings call.

American Eagle, Jim Beam Brands, Credit Suisse, and The University of Dayton are among some of the new customers. The company has 52 insurance-carrier customers, up from 43 a year ago.

The Daniel Island-based software firm focuses on the benefits industry. During Monday's call, the company reported that revenue hit $42.7 million during the second quarter, up 32% from the same time last year.

Of that, software revenue was $38.1 million, professional services revenue was $4.6 million, employer revenue was $20.8 million and insurance-carrier revenue was $21.9 million.

The company reported non-GAAP, or generally accepted accounting principles, net losses of $15.3 million, or 53 cents per share, for the second quarter. This is down 6% from the same time last year.

CFO Milt Alpern briefly reported company GAAP results during the call: Gross profit was $19.1 million, operating loss was $16.4 million and net loss per share was 64 cents.

Jenkins said the firm is benefiting from employers seeking a broader range of employee benefits.

"We are seeing a greater number of employers evaluate their long-term benefit offerings, while they also realize the significant level of disruption occurring in the market, whether from new government regulations or the consumerization of IT and health care," Jenkins said. "These trends are driving the need for more comprehensive solutions."