Feb 28, 2019

Castlight Health Announces Fourth Quarter and Full Year 2018 Results

Full Year 2018 Total Revenue of $156.4 Million, Up 18% Year-over-Year

Generated $7.5 Million in Cash Flow from Operations in the Fourth Quarter

SAN FRANCISCO, February 28, 2019 — Castlight Health, Inc. (NYSE:CSLT), a leading health benefits platform provider, today announced results for its fourth quarter and full year ended December 31, 2018.

“In 2018, we executed on the final chapter of our transformation into a health navigation platform through launching our Complete flagship product, proving out our channels strategy and generating cash flow from operations this quarter,” said John Doyle, chief executive officer of Castlight Health. “Our industrial strength products enable users to navigate healthcare with a deeply personalized and integrated experience and make Castlight the clear leader in digital health navigation.”

Financial performance for the three months ended December 31, 2018 compared to the three months ended December 31, 2017 includes:

  • GAAP total revenue of $42.1 million, representing an increase of 13%
  • GAAP subscription revenue of $39.4 million, representing an increase of 17%
  • GAAP gross margin of 65.0%, compared to 64.1%
  • Non-GAAP gross margin of 68.0% compared to 68.0%
  • GAAP operating loss of $3.8 million, compared to a loss of $7.5 million
  • Non-GAAP operating income of $1.6 million, compared to a loss of $4.4 million
  • GAAP net loss per basic and diluted share of $0.03, compared to a net loss per basic and diluted share of $0.05
  • Non-GAAP net income per basic and diluted share of $0.01, compared to a net loss per basic and diluted share of $0.03
  • Cash provided by operations of $7.5 million, compared to $0.1 million used in operations

Financial performance for the twelve months ended December 31, 2018 compared to the twelve months ended December 31, 2017 includes:

  • GAAP total revenue of $156.4 million, representing an increase of 18%
  • GAAP gross margin of 61.5%, compared to 64.7%
  • Non-GAAP gross margin of 65.3% compared to 68.8%
  • GAAP operating loss of $39.9 million, compared to a loss of $57.7 million
  • Non-GAAP operating loss of $12.7 million, compared to a loss of $24.6 million
  • GAAP net loss per basic and diluted share of $0.29, compared to a net loss per basic and diluted share of $0.41
  • Non-GAAP net loss per basic and diluted share of $0.09, compared to a net loss per basic and diluted share of $0.19
  • Cash used in operations of $18.6 million, compared to $23.5 million used in operations

Total cash, cash equivalents and marketable securities was $77.3 million as of December 31, 2018.

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.”

Business Outlook

For the full year 2019, the Company expects:

  • GAAP revenue in the range of $153 million to $158 million
  • Non-GAAP operating income in the range of $0 million to $5 million
  • Non-GAAP net income per share of approximately $0.00 to $0.03 based on approximately 145 million to 146 million shares

Quarterly Conference Call

Castlight Health senior management will host a conference call to discuss its fourth quarter and full year 2018 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 (833) 238-7953 and the replay will be available for one week at (800) 585-8367.  The conference ID number for the live call and replay is 7089010.

 

Press Information

Claire Egan Doyle

press@castlighthealth.com

415-829-1500