Benefitfocus, Inc. (BNFT) saw its loss narrow to $7.10 million, or $0.24 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $12.49 million, or $0.43 a share. On the other hand, adjusted net loss for the quarter narrowed to $2.56 million, or $0.09 a share from a loss of $9.52 million or $0.33 a share, a year ago.
Revenue during the quarter grew 15.29 percent to $62.65 million from $54.34 million in the previous year period. Gross margin for the quarter expanded 418 basis points over the previous year period to 48.09 percent. Operating margin for the quarter stood at negative 8.08 percent as compared to a negative 19.55 percent for the previous year period.
Operating loss for the quarter was $5.06 million, compared with an operating loss of $10.62 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $0.52 million compared to operating loss of $7.66 million in prior year period.
"The fourth quarter capped a year of numerous accomplishments for the Benefitfocus team," said Shawn Jenkins, chief executive officer of Benefitfocus. "Driven by strong demand for our platform, during 2016 total revenue grew 26% year-over-year and we improved our profitability. In addition, once again, our software revenue retention rate was over 95% for both the quarter and year."
For the fiscal year 2017, Benefitfocus, Inc. projects revenue to be in the range of $263.50 million to $268.50 million. The company expects net loss to be in the range of $31.70 million to $27.70 million. The company forecasts adjusted net loss to be in the range of $11.50 million to $7.50 million. The company forecasts diluted loss per share to be in the range of $0.37 to $0.24 on adjusted basis.
For the first-quarter 2017, Benefitfocus, Inc. projects revenue to be in the range of $62.50 million to $63.50 million. The company expects net loss to be in the range of $9.10 million to $8.10 million. The company forecasts adjusted net loss to be in the range of $4.50 million to $3.50 million. On an adjusted basis, the company forecasts diluted loss per share to be in the range of $0.15 to $0.11.
Operating cash flow remains negative
Benefitfocus, Inc. has spent $22.83 million cash to meet operating activities during the year as against cash outgo of $31.54 million in the last year.
Cash flow from investing activities was $25.52 million from investing activities during the year as against cash outgo of $50.24 million in the last year.
Cash flow from financing activities was $6.09 million for the year, down 92.27 percent or $72.70 million, when compared with the last year.
Cash and cash equivalents stood at $56.85 million as on Dec. 31, 2016, up 18.26 percent or $8.78 million from $48.07 million on Dec. 31, 2015.
Working capital drops significantly
Benefitfocus, Inc. has witnessed a decline in the working capital over the last year. It stood at $4.20 million as at Dec. 31, 2016, down 77.10 percent or $14.15 million from $18.35 million on Dec. 31, 2015. Current ratio was at 1.05 as on Dec. 31, 2016, down from 1.17 on Dec. 31, 2015.
Days sales outstanding were almost stable at 24 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding went down to 8 days for the quarter from 12 for the same period last year.
Debt increases substantially
Benefitfocus, Inc. has witnessed an increase in total debt over the last one year. It stood at $100.78 million as on Dec. 31, 2016, up 54.87 percent or $35.71 million from $65.08 million on Dec. 31, 2015. Total debt was 55.86 percent of total assets as on Dec. 31, 2016, compared with 35.73 percent on Dec. 31, 2015.
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