Total Revenue of $37.8 million, Up 16% Year-over-Year
SAN FRANCISCO, July 30, 2018 — Castlight Health, Inc. (NYSE:CSLT), a leading health benefits platform provider, today announced results for its second quarter ended June 30, 2018.
“We’ve seen strong validation over the last two quarters that our health navigation solution is penetrating the market efficiently, which demonstrates the strategic value to us of our platform and channel collaborations,” said John Doyle, chief executive officer of Castlight Health. “Based on these results, we will increase our focus on adding new channel partners and align our costs accordingly. We will reduce operating expenses by 10 to 15 percent, which will position us to break even beginning in Q4, while continuing to make the critical platform investments needed to lead the health navigation market.”
Financial performance for the three months ended June 30, 2018 compared to the three months ended June 30, 2017 includes:
- GAAP total revenue of $37.8 million, representing an increase of 16%
- GAAP gross margin of 58.4%, compared to 62.2%
- Non-GAAP gross margin of 62.2% compared to 67.4%
- GAAP operating loss of $14.1 million, compared to a loss of $17.6 million
- Non-GAAP operating loss of $6.9 million, compared to a loss of $8.7 million
- GAAP net loss per basic and diluted share of $0.10, compared to a net loss per basic and diluted share of $0.09
- Non-GAAP net loss per basic and diluted share of $0.05, compared to a net loss per basic and diluted share of $0.07
- Cash used in operations of $1.1 million, compared to $4.1 million
Total cash, cash equivalents and marketable securities was $74.5 million as of June 30, 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.”
Today, the Company is announcing a restructuring program to align its operations with its evolving business needs. This is also due, in part, to the recent unexpected churn of a large customer. Under this program, the Company intends to reduce operating expenses by 10 to 15 percent. The actions associated with this program are expected to be largely completed by September 30, 2018. The Company expects to take a restructuring charge in the third quarter of 2018, which will be excluded from its full year 2018 non-GAAP operating loss and non-GAAP net loss per share calculation.
The Company is reiterating its previously-issued 2018 outlook. 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 second quarter 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 (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 3899475.