Benefitfocus total revenue up 33% for Q2

By Liz Segrist
Published Aug. 8, 2014

Benefitfocus reported its total revenue increased by 33% to $32.3 million in the second quarter compared to the same time a year ago, despite heavy operating and net losses.

The Daniel Island-based software firm, which focuses on the benefits industry, announced its second-quarter financial results in a conference call Thursday.

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For the second quarter, ended June 30, software revenue was $29.8 million, up 32%; professional services revenue was $2.5 million, up 50%; employer revenue was $14.3 million, up 59%; and insurance carrier revenue was $18 million, up 17%.

Operating loss was up 91% at $17.4 million for the second quarter, compared with an operating loss of $9.1 million for the second quarter of 2013.

Net loss was up 90% at $18.2 million for the second quarter, compared with $9.6 million for the same period last year.

Net loss per share was 72 cents, based on 25.2 million common shares outstanding, compared to a net loss per share of $2 for the second quarter of 2013, which was based on 4.8 million common shares outstanding.

Benefitfocus President and CEO Shawn Jenkins said changes in the benefits administration market continue to accelerate.

“The market is in the early stages of this transformation and we are making investments to position Benefitfocus to capitalize on this multibillion-dollar opportunity,” Jenkins said.

The tech firm ended the quarter with 488 large employer customers, up from 348 at the end of the year ago period, and 43 insurance carrier customers, which remains consistent with last year.

The firm added new customers during the quarter, including Brookdale Senior Living, Forever 21, Hard Rock Cafe, McGraw-Hill Education, Office Depot, CDW and Owens Corning.

“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 said.

The company also rolled out several product announcements and enhancements during its One Place conference in May.

Additionally, Benefitfocus COO Andy Howell has been appointed to the position of chief commercial officer with responsibility for all sales and marketing functions. The company appointed Ray August, the former financial services manager at Computer Sciences Corp., to COO.

Reach staff writer Liz Segrist at 843-849-3119 or @lizsegrist on Twitter.

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