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Benefitfocus (BNFT)

Benefitfocus unifies the entire benefits industry through innovative technology solutions that bring efficiency, cost savings and simplicity to employee benefits administration. The Company's powerful cloud-based software, data-driven insights and thoughtfully designed services help employers, insurance brokers, health plans and suppliers address the complexity of benefits enrollment and engagement, while bringing easier access to health, wealth and lifestyle products through a world-class benefits experience. The Company's mission is simple: to improve lives with benefits.

Company profile

Ticker
BNFT
Exchange
CEO
Raymond August
Employees
Incorporated
Location
Fiscal year end
Former names
Benefitfocus,Inc.
SEC CIK
Subsidiaries
A Delaware corporation • Benefitfocus.com, Inc. • BenefitStore, Inc. • Tango Health, Inc. ...
IRS number
462346314

BNFT stock data

Analyst ratings and price targets

Last 3 months

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

5 Aug 22
1 Oct 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 51.5M 51.5M 51.5M 51.5M 51.5M 51.5M
Cash burn (monthly) 2.49M 3.88M 4.05M 2.25M 233K (no burn)
Cash used (since last report) 7.62M 11.86M 12.37M 6.89M 712.34K n/a
Cash remaining 43.88M 39.63M 39.13M 44.61M 50.78M n/a
Runway (months of cash) 17.6 10.2 9.7 19.8 218.0 n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
2 Sep 22 Alpana Wegner Common Stock Sell Dispose S No Yes 6.5944 3,622 23.88K 222,577
1 Sep 22 Alpana Wegner Common Stock Sell Dispose S No Yes 6.8609 2,178 14.94K 226,199
1 Jul 22 Dennerline Douglas Common Stock Grant Acquire A No No 0 20,726 0 70,431
1 Jul 22 Rushing Coretha M Common Stock Grant Acquire A No No 0 10,363 0 29,943
1 Jul 22 John J Park Common Stock Grant Acquire A No No 0 20,726 0 36,100
1 Jul 22 J Bradley Wilson Common Stock Grant Acquire A No No 0 20,726 0 38,955
83.1% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 101 107 -5.6%
Opened positions 9 11 -18.2%
Closed positions 15 17 -11.8%
Increased positions 37 33 +12.1%
Reduced positions 31 45 -31.1%
13F shares Current Prev Q Change
Total value 1.08B 354.91M +205.6%
Total shares 28.45M 28.17M +1.0%
Total puts 202.4K 168.1K +20.4%
Total calls 42.92K 16.5K +160.1%
Total put/call ratio 4.7 10.2 -53.7%
Largest owners Shares Value Change
Indaba Capital Management 3.96M $30.84M 0.0%
Archon Capital Management 3.32M $25.85M +0.3%
Brown Brothers Harriman & Co 3.1M $24.09M 0.0%
BLK Blackrock 2M $15.57M +0.8%
Lynrock Lake 1.8M $14M +7.7%
Vanguard 1.79M $13.89M +0.8%
Siris Capital 1.48M $11.54M 0.0%
Needham Investment Management 1.19M $9.26M +0.5%
Baillie Gifford & Co 996.79K $7.76M +0.4%
Tikvah Management 975.12K $7.59M 0.0%
Largest transactions Shares Bought/sold Change
FHI Federated Hermes 224.61K +193.86K +630.5%
Globeflex Capital L P 149.45K +149.45K NEW
VIEX Capital Advisors 933.05K +140.64K +17.7%
Lynrock Lake 1.8M +129.22K +7.7%
Dimensional Fund Advisors 179.32K -92.6K -34.1%
Aqr Capital Management 92.86K -87.92K -48.6%
Repertoire Partners 81.07K +81.07K NEW
DB Deutsche Bank AG - Registered Shares 385.42K +77.28K +25.1%
STT State Street 547.71K -72.15K -11.6%
MS Morgan Stanley 175.06K -66.03K -27.4%

Financial report summary

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Risks
  • We have had a history of losses, and we might not be able to achieve or sustain profitability.
  • Our quarterly operating results have fluctuated in the past and might continue to fluctuate, causing the value of our common stock to decline substantially.
  • The COVID-19 pandemic could have an adverse impact on our business and the duration and extent to which the pandemic will impact our future financial performance remains uncertain.
  • Our business could be negatively affected as a result of the actions of activist stockholders.
  • We operate in a highly competitive industry, and if we are not able to compete effectively, our business and operating results will be harmed.
  • The market for our products and services is immature and volatile, and if it does not develop or if it develops more slowly than we expect, the growth of our business will be harmed.
  • The SaaS pricing model is evolving and our failure to manage its evolution and demand could lead to lower than expected revenue and profit.
  • If we do not continue to innovate and provide products and services that are useful to consumers, employers, insurance carriers, and brokers and provide high quality support services, we might not remain competitive, and our revenue and operating results could suffer.
  • If we are unable to retain our existing customers, our revenue and results of operations would be adversely affected.
  • A significant amount of our revenue is derived from our largest customers, and any reduction in revenue from any of these customers would reduce our revenue and net income.
  • Economic or geopolitical uncertainties or downturns in the general economy or the industries in which our customers operate could disproportionately affect the demand for our solutions and negatively impact our results of operations.
  • Failure to adequately and effectively expand our direct sales force will impede our growth.
  • Our growth depends in part on the success of our strategic relationships with third parties, including brokers.
  • If the number of individuals covered by our employer and health plan customers decreases or the number of products or services to which our employer and health plan customers subscribe or their employees purchase decreases, our revenue will decrease.
  • Failure to manage our continued growth effectively could increase our expenses, decrease our revenue, and prevent us from implementing our business strategy.
  • If we fail to maintain awareness of our brand cost-effectively, our business might suffer.
  • We might not be able to utilize a significant portion of our net operating loss or other tax credit carryforwards, which could adversely affect our profitability.
  • We might be unable to adequately protect, and we might incur significant costs in enforcing, our intellectual property and other proprietary rights.
  • We might be sued by third parties for alleged infringement of their proprietary rights.
  • Any litigation could be costly and time-consuming to defend.
  • Acquisitions could prove difficult to integrate, disrupt our business, dilute stockholder value, and adversely affect our operating results and the value of our common stock.
  • Future sales to customers outside the United States or with international operations might expose us to risks inherent in international sales which, if realized, could adversely affect our business.
  • Changes in and interpretations of accounting principles and their implementation could have an adverse impact on our reported financial results.
  • The breach or failure of our security measures, unauthorized access to or disclosure of customers’ or consumers’ data, or disruption of our products or services caused by security breaches or other incidents may result in our products and services being perceived as unsecure, cause customers and consumers to curtail or stop using our products and services, and cause us to incur significant liabilities.
  • Our failure or failure by our customers to obtain proper permissions and waivers might result in claims against us or may limit or prevent our use of data, which could harm our business.
  • Our proprietary software might not operate properly, which could damage our reputation, give rise to claims against us, or divert application of our resources from other purposes, any of which could harm our business and operating results.
  • Various events could interrupt customers’ access to the Benefitfocus Platform, exposing us to significant costs.
  • We currently rely on data center providers, Internet infrastructure, bandwidth providers, third-party computer hardware and software, other third parties, and our own systems for providing services to our customers, and any failure or interruption in the services provided by these third parties or our own systems could expose us to litigation and negatively impact our relationships with customers, adversely affecting our brand and our business.
  • Interruptions or delays in migrating our service from our third-party data center hosting facilities to cloud computing and hosting providers could impair the delivery of our services and harm our business.
  • If we are unable to rely on temporary staff during peak enrollment periods, our business might suffer.
  • Government regulation of the areas in which we operate creates risks and challenges with respect to our compliance efforts and our business strategies.
  • Potential regulatory requirements placed on our software, services, and content could impose increased costs on us, delay or prevent our introduction of new service types, and impair the function or value of our existing service types.
  • Potential government subsidy of services similar to ours, or creation of a single payor system, might reduce customer demand.
  • Our services present the potential for embezzlement, identity theft, or other similar illegal behavior by our associates with respect to third parties.
  • We have incurred substantial indebtedness that may decrease our business flexibility, access to capital and/or increase our borrowing costs, and we may still incur substantially more debt, which may adversely affect our operations and financial results.
  • Servicing our debt and preferred dividends requires a significant amount of cash, and we might not have or be able to obtain sufficient cash to pay our substantial debt or required dividends.
  • The conditional conversion feature of the Notes, if triggered, and any required repurchase of the Notes may adversely affect our financial condition and operating results.
  • The Notes are effectively subordinated to our secured debt and any liabilities of our subsidiaries.
  • We may still incur substantially more debt or take other actions that would diminish our ability to make payments on the Notes when due.
  • The conversion of the Notes will dilute the ownership interest of existing stockholders, including holders who had previously converted their Notes, or may otherwise depress the price of our common stock.
  • The capped call transactions we entered into in connection with the issuance of the Notes might not turn out to be effective in reducing dilution, and might adversely affect the value of our common stock.
  • The accounting method for convertible debt securities that may be settled in cash, such as the Notes, could have a material effect on our reported financial results.
  • Our stock price may be volatile or may decline regardless of our operating performance, and you may not be able to resell your shares at or above the price at which you purchase it.
  • Our stock price could decline due to the large number of outstanding shares of our common stock and those underlying the Notes eligible for future sale.
  • The issuance of shares of our common stock upon conversion of our Series A Preferred Stock may dilute the ownership interest of our existing common stockholders, adversely impact the market price of our common stock and make it more difficult for us to raise funds through future equity offerings.
  • Our preferred stockholders have significant rights and preferences over the holders of our common stock that could limit us from taking certain corporate actions, and as a result affect our business, operating results, and the market price of our common stock.
  • We do not currently intend to pay dividends on our common stock and, consequently, your ability to achieve a return on your investment will depend on appreciation in the price of our common stock.
  • Provisions in our restated certificate of incorporation, as amended, and amended and restated bylaws and Delaware law might discourage, delay, or prevent a change in control of our company or changes in our management and, therefore, depress the trading price of our common stock.
Management Discussion
  • Subscription revenue was relatively flat year over year. While we experienced improvements in returns and allowances over the prior year, those improvements were offset by the impact of the renegotiation of a certain customer contract.
  • Platform revenue increased from growth in premiums and additional volume on the platform. As discussed above in “Components of Operating Results – Revenue”, we recognize platform revenue from carriers and specialty products over the policy period and we recognize commissions revenue at a point in time.
  • The decrease in professional services revenue was attributable to a decrease in implementation revenue and lower levels of demand from custom requests from health plan customers.

Content analysis

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Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. freshman Avg
New words: ARR, claim, confidential, confirmation, dismissal, duty, economy, global, light, Partner, plaintiff, prejudice, proceeding, recession, rental, resolved, revision, settle, stipulated, Stipulation, trajectory, uncertainty, unfavorable, volatility
Removed: improve, restructured