 Financial performance exceeded high end of revenue and adjusted EBITDA guidance Strong execution and continued innovation positions company for long-term growth and value creationCHARLESTON, S.C., Aug. 05, 2020 GLOBE NEWSWIRE -- Benefitfocus, Inc. NASDAQ: BNFT, a technology platform driving rapid innovation for employers and health plans, today announced its second quarter 2020 financial results.Benefitfocus delivered a strong quarter including enhanced profitability and liquidity. I am extremely proud of our team for delivering these results, particularly in the context of a challenging environment that was unthinkable just six months ago, said Ray August, President and Chief Executive Officer of Benefitfocus. Our team is executing well and delivering high-impact solutions for our customers and partners. As the world becomes more focused than ever on improving health outcomes, we have strengthened our resolve and commitment to our mission to transform our industry and improve lives with benefits.Steve Swad, Chief Financial Officer said, We swiftly adjusted our cost base during the quarter in response to COVID-19, and at the same time substantially strengthened our cash position through an 80 million strategic investment from BuildGroup LLC. Our strong execution in the quarter allowed us to increase our profitability and cash flow outlook for the year, while also investing in automation and platform innovation to drive sustainable long-term growth. Highlights include: Exceeded high end of Q2 revenue and adjusted EBITDA guidance; Increased full year 2020 adjusted EBITDA and free cash flow guidance on strength of Q2 operating performance; Closed 80 million investment by BuildGroup LLC, substantially strengthening the companys balance sheet; Won new health plan customer, Medica, to enable digital transformation and deliver a modern enrollment solution; Enhanced our platforms mobile and communication capabilities to streamline the enrollment experience, reduce administrative burden and increase customer engagement; and Added insurance innovator Haven Life to Benefit Catalog, the industrys leading marketplace for voluntary benefits.Second Quarter 2020 Financial Highlights Revenue Total revenue was 62.2 million, a decrease of 9 compared to the second quarter of 2019. Software services was 49.9 million, a decrease of 6 compared to the second quarter of 2019. Software services comprise subscription and platform revenue. Subscription revenue was 43.8 million, a decrease of 8 compared to the second quarter of 2019. Platform revenue was 6.1 million, an increase of 13 compared to the second quarter of 2019. Professional services revenue was 12.3 million, a decrease of 21 compared to the second quarter of 2019.Net Loss GAAP net loss was 11.9 million, compared to 14.9 million in the second quarter of 2019. GAAP net loss per share was 0.38, based on 32.1 million basic and diluted weighted average common shares outstanding, compared to 0.46 for the second quarter of 2019, based on 32.6 million basic and diluted weighted average common shares outstanding.Non-GAAP Net Loss and Adjusted EBITDA Non-GAAP net loss was 7.8 million compared to 10.0 million in the second quarter of 2019. Non-GAAP net loss per share was 0.26 and 0.31 in the second quarter of 2020 and 2019, respectively, based on 32.1 million and 32.6 million basic and fully diluted weighted average common shares outstanding for the second quarter of 2020 and 2019, respectively. Adjusted EBITDA was 9.3 million, compared to roughly breakeven in the second quarter of 2019.See important disclosures about non-GAAP measures, and a reconciliation of them to GAAP, below.Balance Sheet Cash and cash equivalents at June 30, 2020 totaled 183.5 million, compared to 114.7 million at the end of the first quarter of 2020. During the second quarter of 2020, the company repurchased approximately 36,000 shares of its common stock at a total cost of approximately 285,000, representing an average price per share of approximately 7.98. Since initiating its share repurchase program last quarter, the company has repurchased slightly more than 1.1 million shares of its common stock for approximately 9.7 million, representing an average repurchase price of 8.71 per share.Updated Business OutlookBased on information available as of August 5, 2020, Benefitfocus is providing guidance for the third quarter and full year 2020 as indicated below.Third Quarter 2020: Total revenue is expected to be in the range of 59 million to 62 million. Non-GAAP net loss is expected to be in the range of 6 million to 3 million, or 0.21 to 0.12 per share, based on 32.3 million basic and diluted weighted average common shares outstanding. Adjusted EBITDA is expected to be in the range of 6 million to 9 million.Full Year 2020: Total revenue is expected to be in the range of 260 million to 270 million. Non-GAAP net loss is expected to be in the range of 16 million to 11 million, or 0.59 to 0.44 per share, based on 32.3 million basic and diluted weighted average common shares outstanding. Adjusted EBITDA is expected to be in the range of 35 million to 40 million. Free cash flow is expected to be in the range of 10 million to 20 million.Adjusted EBITDA and free cash flow guidance excludes the impact of restructuring charges.Management has not reconciled forward-looking non-GAAP net loss, adjusted EBITDA or free cash flow to their most directly comparable GAAP measure of GAAP net loss or GAAP operating cash flows. This is because we cannot predict with reasonable certainty the ultimate outcome of the various necessary GAAP components of such reconciliations, including, for example, those related to compensation, acquisition transactions and integration, or others that may arise during the year, without unreasonable effort. These components and other factors could materially impact the amount of the future directly comparable GAAP measures, which may differ significantly from their non-GAAP counterparts. See below for additional important disclosures regarding our non-GAAP financial measures.Conference Call Details:In conjunction with this announcement, Benefitfocus will host a conference call to discuss the companys financial results and business outlook on Wednesday, August 5, 2020, at 5:00 p.m. ET. To access this call, dial 877 407-9208 domestic or 201 493-6784 international. A live webcast of the conference call will be available on the Investor Relations page of the companys website at After the conference call, a replay will be available until August 12, 2020, and can be accessed by dialing 844 512-2921 domestic or 412 317-6671 international with passcode 13706867.About BenefitfocusBenefitfocus NASDAQ: BNFT unifies the entire U.S. benefits industry on a single technology platform to protect consumers health, wealth, property and lifestyle. Our powerful cloud-based software, data-driven insights and thoughtfully-designed services, enable employers, insurance brokers, carriers and suppliers to simplify the complexity of benefits administration and deliver a world-class benefits experience. Learn more at LinkedIn and Twitter.Non-GAAP Financial MeasuresThe company uses certain non-GAAP financial measures in this release, including non-GAAP gross profit, operating loss, net lossincome, net lossincome per common share, adjusted EBITDA and free cash flow. Generally, a non-GAAP financial measure is a numerical measure of a companys performance or financial position that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP gross profit, operating lossincome, net lossincome and net lossincome per common share exclude stock-based compensation expenses, amortization of acquisition-related intangible assets, transaction and acquisition-related costs expensed, if any, restructuring charges, if any, and costs not core to our business, if any. We define adjusted EBITDA as net loss before net interest, taxes, and depreciation and amortization expense, adjusted to eliminate stock-based compensation expense, expense related to the impairment of goodwill and intangible assets, transaction and acquisition-related costs expensed, restructuring charges and costs not core to our business. We define free cash flow as cash used in operating activities less capital expenditures, adjusted to eliminate restructuring charges. Please note that other companies might define their non-GAAP financial measures differently than we do.Management presents these non-GAAP financial measures in this release because it considers them to be important supplemental measures of performance. Management uses these non-GAAP financial measures for planning purposes, including analysis of the companys performance against prior periods, the preparation of operating budgets and to determine appropriate levels of operating and capital investments. Management believes that these non-GAAP financial measures provide additional insight for analysts and investors in evaluating the companys financial and operational performance. Management also intends to provide these non-GAAP financial measures as part of the companys future earnings discussions and, therefore, their inclusion should provide consistency in the companys financial reporting.Non-GAAP financial measures have limitations as an analytical tool. 