|By Business Wire||
|May 7, 2014 04:08 PM EDT||
Castlight Health, Inc. (NYSE: CSLT), a pioneer of the Enterprise Healthcare Cloud, today announced results for its first quarter ended March 31, 2014.
“We had a very strong first quarter across our business,” said Giovanni Colella, M.D., co-founder and Chief Executive Officer, Castlight Health. “Demand continues to grow from large enterprises interested in adopting Castlight’s Enterprise Healthcare Cloud platform to gain control over their healthcare spending. During the first quarter we added customers from diverse sectors, including large employers such as Comcast, Freescale Semiconductor and the State of Kansas.”
Colella continued, “Further, we executed 29 customer implementations during the first quarter, including successful launches for a number of Fortune 500 companies. This was nearly three times as many deployments as we had executed in any previous quarter, which gives us great confidence in our ability to meet the increasing demand that we are seeing in the market.”
Financial Performance for the Three Months Ended March 31, 2014
- Total revenue for the first quarter of 2014 was $8.4 million, an increase of 339% from the first quarter of 2013. Subscription revenue was $7.5 million, an increase of 329% on a year-over-year basis. Professional services revenue was $0.9 million, an increase of 443% compared with the same period last year.
- Gross margin for the first quarter of 2014 was 21.4%, compared to a gross loss of 70.8% in the first quarter of 2013. Non-GAAP gross margin for the first quarter of 2014 was 23.1% compared to a gross loss of 69.2% in the first quarter of 2013.
- Operating loss for the first quarter of 2014 was $24.3 million, compared to an operating loss of $11.5 million during the first quarter of 2013. Non-GAAP operating loss for the first quarter of 2014 was $19.3 million, compared to a non-GAAP operating loss of $11.1 million during the first quarter of 2013.
- Net loss per basic and diluted share was ($0.90) in the first quarter of 2014, compared to a loss of ($1.24) per share in the first quarter of 2013. The first quarter of 2014 non-GAAP loss per share was ($0.72), compared to a loss of ($1.19) per share in the first quarter of 2013. For both GAAP and non-GAAP purposes, the weighted average basic and diluted share count for the first quarter of 2014 was 27.0 million compared to 9.3 million in the first quarter of 2013.
- Total cash, cash equivalents and marketable securities were $239.7 million at the end of the first quarter of 2014, up from $67.2 million at the end of last quarter. The increase in cash was due to net proceeds of over $185 million from the company’s initial public offering. Cash used in operations for the first quarter of 2014 was $16.1 million, compared to $12.2 million used in operations in the first quarter of 2013.
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”.
Q2 2014 Guidance: Revenue for the company’s second fiscal quarter is expected to be in the range of $9.3 million to $9.6 million, an increase of 300% to 313% year over year. Non-GAAP operating loss is expected to be in the range of ($20.0) million to ($20.5) million. Non-GAAP basic and diluted loss per share is expected to be in the range of ($0.22) to ($0.23) based on 90.0 million weighted average basic and diluted common shares outstanding.
Full Year 2014 Guidance: Revenue for the company’s full year 2014 is expected to be in the range of $40.0 million to $41.0 million, an increase of 208% to 216% year over year. Non-GAAP operating loss is expected to be in the range of ($75.5) million to ($76.9) million. Non-GAAP basic and diluted loss per share is expected to be in the range of ($1.01) to ($1.03) based on 75.0 million weighted average basic and diluted common shares outstanding.
For both the second quarter and the full year 2014, non-GAAP estimates exclude the effects of stock-based compensation expense and warrant expense.
Quarterly Conference Call
Castlight Health will host a conference call to discuss its first quarter results 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 Web site at http://ir.castlighthealth.com. In addition, an archive of the audiocast can be accessed through the same link. Participants who choose to call in to the conference call can do so by dialing domestically 1-877-407-0789 or internationally at 1-201-689-8562. A replay will be available at 1-877-870-5176 or 1-858-384-5517, passcode 13580401, until midnight (Eastern Time) May 14, 2014.
About Castlight Health
Castlight Health (NYSE: CSLT) is a pioneer of the Enterprise Healthcare Cloud. Founded in 2008, San Francisco-based Castlight makes healthcare data actionable, empowering our enterprise customers to gain control over their healthcare spending and transforming how companies and employees engage in healthcare. With Castlight, employers can implement technology-enabled benefit designs, integrate disparate healthcare applications, and provide meaningful information to employees and their families. More than 100 companies, ranging from medium-sized businesses to Fortune 50 enterprises, have selected Castlight. For more information visit www.castlighthealth.com. Follow us on Twitter and LinkedIn and Like us on Facebook. Source: Castlight Health.
Non-GAAP Financial Measures
To supplement Castlight Health’s financial statements presented in accordance with generally accepted accounting principles (GAAP), we also use and provide investors and others with non-GAAP measures of certain components of financial performance, including non-GAAP gross margin (loss), non-GAAP operating expense, non-GAAP operating loss and non-GAAP net loss per share. These non-GAAP financial measures differ from GAAP financial measures in that they exclude stock-based compensation, expense for a warrant issued to a third party service provider and the associated tax impact of these items, where applicable.
We believe that these non-GAAP financial measures provide useful supplemental information to investors and others, facilitate the analysis of the company’s core operating results and comparison of operating results across reporting periods, and can help enhance overall understanding of the company’s historical financial performance.
We have provided a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure, except that we have not reconciled our non-GAAP operating loss and net loss per share guidance for the second quarter and full fiscal year of 2014 to comparable GAAP operating loss and net loss per share guidance because we do not provide guidance for share-based compensation expense and warrant expense, which are reconciling items between GAAP and non-GAAP operating loss. The factors that may impact our future share-based compensation expense and warrant expense are out of our control and/or cannot be reasonably predicted, and therefore we are unable to provide such guidance without unreasonable effort.
These non-GAAP financial measures should be considered in addition to, not as a substitute for or in isolation from, measures prepared in accordance with GAAP. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore comparability may be limited. Castlight Health encourages investors and others to review the company’s financial information in its entirety and not rely on a single financial measure.
Safe Harbor For Forward-Looking Statements
This press release contains forward-looking statements including, among other things, statements regarding Castlight Health’s first quarter and full year fiscal 2014 revenue projections, and our expectations for future performance of our business, market growth and business conditions. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to risks, uncertainties, and assumptions. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. Risks include, but are not limited to: (i) adverse changes in general economic or market conditions; (ii) delays or reductions in information technology spending; (iii) competitive factors, including but not limited to pricing pressures, industry consolidation, entry of new competitors and new applications and marketing initiatives by our competitors; (iv) our ability to manage our growth effectively; (v) our limited operating history, which makes it difficult to predict future results; (vi) the development of the market for enterprise healthcare cloud services; (vii) acceptance of our applications and services by customers; (viii) breaches in our security measures or unauthorized access to our customers’ data; and (ix) the fact that changes in sales may not be immediately reflected in our results due to our subscription model. Further information on risks that could affect Castlight Health’s results and/or cause actual results to vary from expectations is included in the prospectus for our initial public offering, filed with the Securities and Exchange Commission (SEC) on March 14, 2014. Further information on potential risks that could affect actual results will be included in other filings that Castlight Health makes with the SEC from time to time.
The forward-looking statements made in this press release represent Castlight Health’s expectations as of the date of this press release. We assume no obligation to, and do not intend to, update any such forward-looking statements after the date of this press release.
Copyright 2014 Castlight Health, Inc. Castlight Health is the registered trademark of Castlight Health Inc. Other company and product names may be trademarks of the respective companies with which they are associated.
|CASTLIGHT HEALTH, INC.|
|CONDENSED CONSOLIDATED BALANCE SHEETS|
|March 31,||December 31,|
|Cash and cash equivalents||$||180,067||$||25,154|
|Accounts receivable, net||6,315||5,065|
|Prepaid expenses and other current assets||2,683||1,583|
|Total current assets||231,273||77,467|
|Property and equipment, net||3,113||2,631|
|Marketable securities, noncurrent||20,313||-|
Restricted cash, noncurrent
|Deferred commissions, noncurrent||1,481||1,821|
|Liabilities, convertible preferred stock and stockholder's equity (deficit)|
|Accrued expenses and other current liabilities||4,927||4,998|
|Total current liabilities||26,213||22,523|
|Deferred revenue, noncurrent||5,585||4,548|
|Other liabilities, noncurrent||345||373|
|Commitments and contingencies|
|Convertible preferred stock||-||180,423|
|Stockholders' equity (deficit)||224,246||(124,350||)|
Total liabilities, convertible preferred stock and stockholders' equity (deficit)
|CASTLIGHT HEALTH, INC.|
|CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS|
|(In thousands, except per share data)|
|Three Months Ended March 31,|
|Cost of revenue:|
|Cost of subscription (1)||2,712||1,204|
|Cost of professional services (1)||3,871||2,053|
|Total cost of revenue||6,583||3,257|
|Gross profit (loss)||1,793||(1,350||)|
|Sales and marketing (1)||16,560||5,765|
|Research and development (1)||5,527||2,908|
|General and administrative (1)||4,010||1,460|
|Total operating expenses||26,097||10,133|
|Other income, net||23||50|
|Net loss per share, basic and diluted||$||(0.90||)||$||(1.24||)|
|Weighted-average shares used to compute basic and diluted net loss per share||26,970||9,255|
|(1)||Includes stock-based compensation expense as follows:|
|Three Months Ended March 31,|
|Cost of revenue:|
|Cost of subscription||$||4||$||1|
|Cost of professional services||140||29|
|Sales and marketing||1,174||183|
|Research and development||421||49|
|General and administrative||814||116|
|CASTLIGHT HEALTH, INC.|
|CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS|
|Three Months Ended March 31,|
|Adjustments to reconcile net loss to net cash used in operating activities:|
|Amortization of deferred commission||1,376||129|
|Accretion and amortization of marketable securities||124||228|
|Expense related to warrant||2,429||-|
|Changes in operating assets and liabilities:|
|Prepaid expenses and other assets||(1,081||)||(100||)|
|Accrued expenses and other liabilities||(3,376||)||(1,297||)|
|Net cash used in operating activities||(16,061||)||(12,154||)|
|Purchase of property and equipment, net||(656||)||(710||)|
|Purchase of marketable securities||(35,733||)||(8,098||)|
|Sales of marketable securities||13,000||5,000|
|Maturities of marketable securities||5,000||5,000|
|Net cash (used in) provided by investing activities||(18,389||)||1,192|
|Proceeds from the exercise of stock options||1,522||46|
Net proceeds from initial public offering
|Net cash provided by financing activities||189,363||46|
|Net increase (decrease) in cash and cash equivalents||154,913||(10,916||)|
|Cash and cash equivalents at beginning of the period||25,154||42,534|
|Cash and cash equivalents at end of the period||$||180,067||$||31,618|
|CASTLIGHT HEALTH, INC.|
|RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES|
|(In thousands, except per share data)|
|Three Months Ended|
|March 31,||December 31,||March 31,|
|Gross profit (loss):|
|GAAP gross profit subscription||$||4,751||$||2,543||$||535|
|GAAP gross margin subscription||63.7||%||55.1||%||30.8||%|
|Stock-based compensation expense included in cost of revenue subscription||4||3||1|
|Non-GAAP gross profit subscription||$||4,755||$||2,546||$||536|
|Non-GAAP gross margin subscription||63.7||%||55.2||%||30.8||%|
|GAAP gross loss professional services||$||(2,958||)||$||(2,790||)||$||(1,885||)|
|GAAP gross loss percentage professional services||(324||)%||(540||)%||(1,122||)%|
|Stock-based compensation expense included in cost of revenue professional services||140||35||29|
|Non-GAAP gross loss professional services||$||(2,818||)||$||(2,755||)||$||(1,856||)|
|Non-GAAP gross loss percentage professional services||
|GAAP gross profit (loss)||$||1,793||$||(247||)||$||(1,350||)|
|GAAP gross margin (loss percentage)||21.4||%||(4.8||)%||(70.8||)%|
|Impact of non-GAAP adjustments||144||38||30|
|Non-GAAP gross profit (loss)||$||1,937||$||(209||)||$||(1,320||)|
|Non-GAAP gross margin (loss percentage)||23.1||%||(4.1||)%||(69.2||)%|
|GAAP sales and marketing||$||16,560||$||12,163||$||5,765|
|Expense related to warrant||(2,429||)||(135||)||-|
|Stock-based compensation expense included in sales and marketing||(1,174||)||(336||)||(183||)|
|Non-GAAP sales and marketing||$||12,957||$||11,692||$||5,582|
|GAAP research and development||$||5,527||$||4,557||$||2,908|
|Stock-based compensation expense included in research and development||(421||)||(395||)||(49||)|
|Non-GAAP research and development||$||5,106||$||4,162||$||2,859|
|GAAP general and administrative||$||4,010||$||3,035||$||1,460|
|Stock-based compensation expense included in general and administrative||(814||)||(285||)||(116||)|
|Non-GAAP general and administrative||$||3,196||$||2,750||$||1,344|
|GAAP operating expenses||$||26,097||$||19,755||$||10,133|
|Impact of non-GAAP adjustments||(4,838||)||(1,151||)||(348||)|
|Non-GAAP operating expenses||$||21,259||$||18,604||$||9,785|
|GAAP operating loss||$||(24,304||)||$||(20,002||)||$||(11,483||)|
|Impact of non-GAAP adjustments||4,982||1,189||378|
|Non-GAAP operating loss||$||(19,322||)||$||(18,813||)||$||(11,105||)|
|GAAP net loss||$||(24,281||)||$||(19,973||)||$||(11,433||)|
|Total pre-tax impact of non-GAAP adjustments||4,982||1,189||378|
|Income tax impact of non-GAAP adjustments||-||-||-|
|Non-GAAP net loss||$||(19,299||)||$||(18,784||)||$||(11,055||)|
|Basic and Diluted net income per share|
|Shares used in basic and diluted net loss per share computation||26,970||10,522||9,255|
Container technology is shaping the future of DevOps and it’s also changing the way organizations think about application development. With the rise of mobile applications in the enterprise, businesses are abandoning year-long development cycles and embracing technologies that enable rapid development and continuous deployment of apps. In his session at DevOps Summit, Kurt Collins, Developer Evangelist at Built.io, examined how Docker has evolved into a highly effective tool for application del...
Nov. 26, 2015 07:00 PM EST Reads: 328
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical...
Nov. 26, 2015 04:00 PM EST Reads: 378
Internet of @ThingsExpo, taking place June 7-9, 2016 at Javits Center, New York City and Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 18th International @CloudExpo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo New York Call for Papers is now open.
Nov. 26, 2015 03:30 PM EST Reads: 523
The cloud. Like a comic book superhero, there seems to be no problem it can’t fix or cost it can’t slash. Yet making the transition is not always easy and production environments are still largely on premise. Taking some practical and sensible steps to reduce risk can also help provide a basis for a successful cloud transition. A plethora of surveys from the likes of IDG and Gartner show that more than 70 percent of enterprises have deployed at least one or more cloud application or workload. Y...
Nov. 26, 2015 03:30 PM EST Reads: 442
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
Nov. 26, 2015 03:15 PM EST Reads: 519
We are rapidly moving to a brave new world of interconnected smart homes, cars, offices and factories known as the Internet of Things (IoT). Sensors and monitoring devices will touch every part of our lives. Let's take a closer look at the Internet of Things. The Internet of Things is a worldwide network of objects and devices connected to the Internet. They are electronics, sensors, software and more. These objects connect to the Internet and can be controlled remotely via apps and programs. ...
Nov. 26, 2015 02:15 PM EST Reads: 498
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, explored the IoT cloud-based platform technologies driving t...
Nov. 26, 2015 01:00 PM EST Reads: 391
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
Nov. 26, 2015 01:00 PM EST Reads: 290
We all know that data growth is exploding and storage budgets are shrinking. Instead of showing you charts on about how much data there is, in his General Session at 17th Cloud Expo, Scott Cleland, Senior Director of Product Marketing at HGST, showed how to capture all of your data in one place. After you have your data under control, you can then analyze it in one place, saving time and resources.
Nov. 26, 2015 12:00 PM EST Reads: 148
As organizations shift towards IT-as-a-service models, the need for managing & protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection & E-Discovery of your data - whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise.
Nov. 26, 2015 11:30 AM EST Reads: 121
In recent years, at least 40% of companies using cloud applications have experienced data loss. One of the best prevention against cloud data loss is backing up your cloud data. In his General Session at 17th Cloud Expo, Sam McIntyre, Partner Enablement Specialist at eFolder, presented how organizations can use eFolder Cloudfinder to automate backups of cloud application data. He also demonstrated how easy it is to search and restore cloud application data using Cloudfinder.
Nov. 26, 2015 11:00 AM EST Reads: 124
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data...
Nov. 26, 2015 11:00 AM EST Reads: 445
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
Nov. 26, 2015 10:00 AM EST Reads: 287
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, rich desktop and tuned mobile experiences can now be created with a single codebase – without compromising functionality, performance or usability. In his session at DevOps Su...
Nov. 26, 2015 09:45 AM EST Reads: 370
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
Nov. 26, 2015 09:30 AM EST Reads: 376