Full Year 2017 Total Revenue of $131.4 million, Up 29% Year-over-Year
SAN FRANCISCO – February 21, 2018 – Castlight Health, Inc. (NYSE:CSLT), a leading health benefits platform provider, today announced results for its fourth quarter and full year ended December 31, 2017.
“2017 was a transformative year for Castlight. We expanded our capabilities into wellbeing, re-accelerated growth of annualized recurring revenues compared to 2016, and positioned the business to reach breakeven in the fourth quarter of this year,” said John Doyle, chief executive officer of Castlight Health. “As we look ahead, we believe Castlight is in a great position to address the critical needs of employers and employees as individuals play an increasingly central role in the health care system.”
Financial performance for the three months ended December 31, 2017 compared to the three months ended December 31, 2016 includes:
- GAAP total revenue of $37.0 million, representing an increase of 24%
- GAAP gross margin of 63.7%, compared to 71.9%
- Non-GAAP gross margin of 67.7% compared to 74.8%
- GAAP operating loss of $8.9 million, compared to a loss of $9.2 million
- Non-GAAP operating loss of $5.8 million, compared to a loss of $1.5 million
- GAAP net loss per basic and diluted share of $0.06, compared to a net loss per basic and diluted share of $0.09
- Non-GAAP net loss per basic and diluted share of $0.04, compared to a net loss per basic and diluted share of $0.01
- Cash used in operations of $0.1 million, compared to $1.7 million used in operations
Financial performance for the twelve months ended December 31, 2017 compared to the twelve months ended December 31, 2016 includes:
- GAAP total revenue of $131.4 million, representing an increase of 29%
- GAAP gross margin of 64.1%, compared to 66.0%
- Non-GAAP gross margin of 68.6% compared to 69.5%
- GAAP operating loss of $61.4 million, compared to a loss of $59.0 million
- Non-GAAP operating loss of $27.7 million, compared to a loss of $30.6 million
- GAAP net loss per basic and diluted share of $0.44, compared to a net loss per basic and diluted share of $0.58
- Non-GAAP net loss per basic and diluted share of $0.22, compared to a net loss per basic and diluted share of $0.30
- Cash used in operations of $23.5 million, compared to $37.0 million used in operations
Total cash, cash equivalents and marketable securities was $93.3 million as of December 31, 2017.
The financial performance of Jiff, Inc., which Castlight acquired on April 3, 2017, is not included in the metrics for fiscal year and fourth quarter ended December 31, 2016. A reconciliation of GAAP to non-GAAP results has been provided in this press release in the accompanying tables. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”
Castlight adopted the new accounting standard ASC 606, effective January 1, 2018, and will use the full retrospective method of adoption. As such, Castlight will restate its historical financial information for fiscal years 2016 and 2017, as well as quarterly 2017. The Company expects to provide these restatements next quarter. Based on our preliminary review of ASC 606’s impact, the Company currently expects to see a reduction of 2018 revenue by approximately $2 million compared to what it would have expected under the former ASC 605 standard.
The Company’s outlook is based on the new revenue recognition standard ASC 606. For the full year 2018, the Company expects:
- GAAP revenue in the range of $150 million to $155 million
- Non-GAAP operating loss in the range of $15 million to $20 million
- Non-GAAP net loss per share of approximately $0.11 to $0.15 based on approximately 137 million to 138 million shares
Quarterly Conference Call
Castlight Health senior management will host a conference call to discuss its fourth quarter 2017 results and business outlook today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). A live audio webcast of the conference call, together with detailed financial information, can be accessed through the company’s Investor Relations website at http://ir.castlighthealth.com. An archive of the webcast can also be accessed through the same link. The live conference call can be accessed by dialing (866) 393-4306 and the replay will be available for one week at (855) 859-2056. The conference ID number for the live call and replay is 5381456.