Benefitfocus, Inc (BNFT) saw its loss narrow to $7.69 million, or $0.25 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $13.35 million, or $0.46 a share. On the other hand, adjusted net loss for the quarter narrowed to $3.24 million, or $0.11 a share from a loss of $8.56 million or $0.29 a share, a year ago. Revenue during the quarter grew 17.12 percent to $64.17 million from $54.79 million in the previous year period. Gross margin for the quarter expanded 422 basis points over the previous year period to 50.76 percent. Operating margin for the quarter stood at negative 7.24 percent as compared to a negative 20.97 percent for the previous year period.
Operating loss for the quarter was $4.64 million, compared with an operating loss of $11.49 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $0.19 million compared to operating loss of $6.69 million in prior year period.
“Benefitfocus delivered a strong start to 2017, as our revenue and profitability exceeded the high-end of our guidance,” said Shawn Jenkins, Chief Executive Officer of Benefitfocus. “Demand for our platform drove 26% growth in our employer revenue and, once again, our software revenue retention rate was over 95%.”
For the second-quarter 2017, Benefitfocus, Inc expects adjusted revenue to be in the range of $61.50 million to $62.50 million and net loss to be in the range of $9.90 million to $8.90 million and its adjusted net loss to be in the range of $5 million to $4 million and diluted loss per share to be in the range of $0.16 to $0.13 and its adjusted diluted loss per share to be in the range of $0.16 to $0.13.
For fiscal year 2017, Benefitfocus, Inc expects adjusted revenue to be in the range of $263.50 million to $268.50 million and net loss to be in the range of $31.70 million to $27.70 million and its net loss to be in the range of $11.50 million to $7.50 million and diluted loss per share to be in the range of $0.37 to $0.24 and its adjusted diluted loss per share to be in the range of $0.37 to $0.24.
Operating cash flow remains negative
Benefitfocus, Inc has spent $7.41 million cash to meet operating activities during the quarter as against cash outgo of $19.82 million in the last year period. The company has spent $0.10 million cash to meet investing activities during the quarter as against cash inflow of $21.91 million in the last year period.
Cash flow from financing activities was $8.33 million for the quarter as against cash outgo of $27.91 million in the last year period.
Cash and cash equivalents stood at $57.67 million as on Mar. 31, 2017, up 159.16 percent or $35.42 million from $22.25 million on Mar. 31, 2016.
Working capital increases sharply
Benefitfocus, Inc has recorded an increase in the working capital over the last year. It stood at $18.19 million as at Mar. 31, 2017, up 89.74 percent or $8.60 million from $9.59 million on Mar. 31, 2016. Current ratio was at 1.25 as on Mar. 31, 2017, up from 1.14 on Mar. 31, 2016.
Days sales outstanding went down to 39 days for the quarter compared with 49 days for the same period last year.
At the same time, days payable outstanding was almost stable at 18 days for the quarter, when compared with the previous year period.
Debt increases substantially
Benefitfocus, Inc has witnessed an increase in total debt over the last one year. It stood at $108.54 million as on Mar. 31, 2017, up 166.68 percent or $67.84 million from $40.70 million on Mar. 31, 2016. Total debt was 63.09 percent of total assets as on Mar. 31, 2017, compared with 29.93 percent on Mar. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
