Delaware (State or other jurisdiction of incorporation or organization) | 001-36330 (Commission File Number) | 26-1989091 (I.R.S. Employer Identification Number) |
Exhibit | Description |
99.1 | Press Release, dated February 17, 2016, entitled "Castlight Health Announces Fourth Quarter and Full Year 2015 Results" |
CASTLIGHT HEALTH, INC. | |||
Date: February 17, 2016 | By: | /s/ John C. Doyle | |
John C. Doyle | |||
Chief Financial Officer and Chief Operating Officer (Principal Financial Officer and Principal Accounting Officer) |
Exhibit | Description |
99.1 | Press Release, dated February 17, 2016, entitled "Castlight Health Announces Fourth Quarter and Full Year 2015 Results" |
• | Total revenue for the fourth quarter of 2015 was $21.3 million, an increase of 47% from the fourth quarter of 2014. Subscription revenue was $19.9 million, an increase of 50% on a year-over-year basis. |
• | Gross margin for the fourth quarter of 2015 was 54.7%, compared to a gross margin of 54.3% in the fourth quarter of 2014. Non-GAAP gross margin for the fourth quarter of 2015 was 58.6% compared to a non-GAAP gross margin of 58.3% in the fourth quarter of 2014. |
• | Operating loss for the fourth quarter of 2015 was $19.1 million, compared to an operating loss of $19.7 million in the fourth quarter of 2014. Non-GAAP operating loss for the fourth quarter of 2015 was $14.9 million, compared to a non-GAAP operating loss of $15.3 million in the fourth quarter of 2014. |
• | Net loss per basic and diluted share was $0.20 in the fourth quarter of 2015, compared to a net loss per basic and diluted share of $0.22 in the fourth quarter of 2014. The non-GAAP net loss per basic and diluted share for the fourth quarter of 2015 was $0.16, compared to a net loss per basic and diluted share of $0.17 in the fourth quarter of 2014. For both GAAP and non-GAAP purposes, the weighted average basic and diluted share count for the fourth quarter of 2015 was 95.0 million compared to 90.5 million in the fourth quarter of 2014. |
• | Total cash, cash equivalents and marketable securities were $133.8 million at the end of the fourth quarter of 2015. Cash used in operations for the fourth quarter of 2015 was $12.0 million, compared to $11.5 million used in operations in the fourth quarter of 2014. |
• | Total revenue for 2015 was $75.3 million, an increase of 65% from 2014. Subscription revenue was $70.4 million, an increase of 69% on a year-over-year basis. |
• | Gross margin for 2015 was 55.2%, compared to a gross margin of 39.1% in 2014. Non-GAAP gross margin for 2015 was 58.6% compared to a non-GAAP gross margin of 42.2% in 2014. |
• | Operating loss for 2015 was $80.2 million, compared to an operating loss of $86.2 million in 2014. Non-GAAP operating loss for 2015 was $64.5 million, compared to a non-GAAP operating loss of $69.6 million in 2014. |
• | Net loss per basic and diluted share was $0.85 in 2015, compared to a net loss per basic and diluted share of $1.16 in 2014. The non-GAAP net loss per basic and diluted share for 2015 was $0.68, compared to a net loss per basic and diluted share of $0.93 in 2014. For both GAAP and non-GAAP purposes, the weighted average basic and diluted share count for 2015 was 93.8 million compared to 74.4 million in 2014. |
• | Total cash, cash equivalents and marketable securities were $133.8 million at the end of 2015. |
As of | |||||||
December 31, 2015 | December 31, 2014 | ||||||
(unaudited) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 19,150 | $ | 17,425 | |||
Marketable securities | 101,274 | 175,057 | |||||
Accounts receivable, net | 12,751 | 11,097 | |||||
Deferred commissions | 5,438 | 3,675 | |||||
Prepaid expenses and other current assets | 3,772 | 3,476 | |||||
Total current assets | 142,385 | 210,730 | |||||
Property and equipment, net | 6,896 | 3,630 | |||||
Marketable securities, noncurrent | 13,335 | 6,220 | |||||
Restricted cash, noncurrent | 1,000 | — | |||||
Deferred commissions, noncurrent | 4,923 | 2,563 | |||||
Other assets | 4,735 | 131 | |||||
Total assets | $ | 173,274 | $ | 223,274 | |||
Liabilities and stockholders’ equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 3,384 | $ | 3,217 | |||
Accrued expenses and other current liabilities | 4,550 | 5,791 | |||||
Accrued compensation | 11,477 | 10,455 | |||||
Deferred revenue | 26,590 | 20,708 | |||||
Total current liabilities | 46,001 | 40,171 | |||||
Deferred revenue, noncurrent | 7,522 | 6,652 | |||||
Other liabilities, noncurrent | 1,397 | 261 | |||||
Total liabilities | 54,920 | 47,084 | |||||
Stockholders’ equity | 118,354 | 176,190 | |||||
Total liabilities and stockholders’ equity | $ | 173,274 | $ | 223,274 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Revenue: | |||||||||||||||
Subscription | $ | 19,933 | $ | 13,309 | $ | 70,350 | $ | 41,602 | |||||||
Professional services | 1,382 | 1,178 | 4,965 | 4,003 | |||||||||||
Total revenue | 21,315 | 14,487 | 75,315 | 45,605 | |||||||||||
Cost of revenue: | |||||||||||||||
Cost of subscription (1) | 3,885 | 2,249 | 12,417 | 10,472 | |||||||||||
Cost of professional services (1) | 5,770 | 4,368 | 21,351 | 17,300 | |||||||||||
Total cost of revenue | 9,655 | 6,617 | 33,768 | 27,772 | |||||||||||
Gross profit | 11,660 | 7,870 | 41,547 | 17,833 | |||||||||||
Operating expenses: | |||||||||||||||
Sales and marketing (1) | 16,579 | 15,798 | 67,414 | 62,065 | |||||||||||
Research and development (1) | 8,224 | 6,284 | 30,077 | 22,917 | |||||||||||
General and administrative (1) | 5,983 | 5,536 | 24,274 | 19,009 | |||||||||||
Total operating expenses | 30,786 | 27,618 | 121,765 | 103,991 | |||||||||||
Operating loss | (19,126 | ) | (19,748 | ) | (80,218 | ) | (86,158 | ) | |||||||
Other income, net | 68 | 64 | 298 | 218 | |||||||||||
Net loss | $ | (19,058 | ) | $ | (19,684 | ) | $ | (79,920 | ) | $ | (85,940 | ) | |||
Net loss per share, basic and diluted | $ | (0.20 | ) | $ | (0.22 | ) | $ | (0.85 | ) | $ | (1.16 | ) | |||
Weighted-average shares used to compute basic and diluted net loss per share | 94,969 | 90,467 | 93,753 | 74,381 |
(1) | Includes stock-based compensation expense as follows: |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Cost of revenue: | |||||||||||||||
Cost of subscription | $ | 87 | $ | 81 | $ | 283 | $ | 180 | |||||||
Cost of professional services | 653 | 494 | 2,175 | 1,220 | |||||||||||
Sales and marketing | 1,822 | 1,594 | 7,705 | 5,933 | |||||||||||
Research and development | 1,154 | 1,081 | 3,498 | 2,556 | |||||||||||
General and administrative | 1,069 | 1,349 | 4,169 | 4,312 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Operating activities: | |||||||||||||||
Net loss | $ | (19,058 | ) | $ | (19,684 | ) | $ | (79,920 | ) | $ | (85,940 | ) | |||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||||||
Depreciation | 646 | 410 | 2,024 | 1,354 | |||||||||||
Stock-based compensation | 4,785 | 4,599 | 17,830 | 14,201 | |||||||||||
Amortization of deferred commissions | 934 | 973 | 3,510 | 4,092 | |||||||||||
Accretion and amortization of marketable securities | 259 | 468 | 1,385 | 1,489 | |||||||||||
Expense related to warrant | — | (20 | ) | — | 2,639 | ||||||||||
Changes in operating assets and liabilities: | |||||||||||||||
Accounts receivable | 894 | 181 | (1,654 | ) | (6,032 | ) | |||||||||
Deferred commissions | (4,287 | ) | (1,235 | ) | (7,633 | ) | (4,861 | ) | |||||||
Prepaid expenses and other assets | 1,354 | 27 | 328 | (1,895 | ) | ||||||||||
Accounts payable | (70 | ) | (46 | ) | 646 | 147 | |||||||||
Accrued expenses and other liabilities | 1,604 | 1,529 | (136 | ) | 4,282 | ||||||||||
Deferred revenue | 982 | 1,254 | 6,752 | 15,887 | |||||||||||
Net cash used in operating activities | (11,957 | ) | (11,544 | ) | (56,868 | ) | (54,637 | ) | |||||||
Investing activities: | |||||||||||||||
Restricted cash | — | — | (1,000 | ) | 101 | ||||||||||
Investment in related party | — | — | (4,125 | ) | — | ||||||||||
Purchase of property and equipment | (1,877 | ) | (462 | ) | (5,376 | ) | (1,860 | ) | |||||||
Purchase of marketable securities | (33,543 | ) | (19,928 | ) | (119,867 | ) | (230,316 | ) | |||||||
Sales of marketable securities | — | — | 5,000 | 13,000 | |||||||||||
Maturities of marketable securities | 40,092 | 22,762 | 180,111 | 76,527 | |||||||||||
Net cash provided by (used in) investing activities | 4,672 | 2,372 | 54,743 | (142,548 | ) | ||||||||||
Financing activities: | |||||||||||||||
Proceeds from the exercise of stock options | 764 | 1,366 | 3,944 | 3,294 | |||||||||||
Payments of deferred financing costs | — | — | (94 | ) | (3,781 | ) | |||||||||
Proceeds from initial public offering | — | — | — | 189,943 | |||||||||||
Net cash provided by financing activities | 764 | 1,366 | 3,850 | 189,456 | |||||||||||
Net (decrease) increase in cash and cash equivalents | (6,521 | ) | (7,806 | ) | 1,725 | (7,729 | ) | ||||||||
Cash and cash equivalents at beginning of period | 25,671 | 25,231 | 17,425 | 25,154 | |||||||||||
Cash and cash equivalents at end of period | $ | 19,150 | $ | 17,425 | $ | 19,150 | $ | 17,425 |
Three Months Ended | Year Ended | ||||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||||||||
2015 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||
Gross profit: | |||||||||||||||||||||
GAAP gross profit subscription | $ | 16,048 | $ | 15,152 | $ | 11,060 | $ | 57,933 | $ | 31,130 | |||||||||||
GAAP gross margin subscription | 80.5 | % | 83.1 | % | 83.1 | % | 82.3 | % | 74.8 | % | |||||||||||
Stock-based compensation expense | 87 | 96 | 81 | 283 | 180 | ||||||||||||||||
Amortization of internal-use software | 124 | 24 | 8 | 196 | 8 | ||||||||||||||||
Non-GAAP gross profit subscription | $ | 16,259 | $ | 15,272 | $ | 11,149 | $ | 58,412 | $ | 31,318 | |||||||||||
Non-GAAP gross margin subscription | 81.6 | % | 83.8 | % | 83.8 | % | 83 | % | 75.3 | % | |||||||||||
GAAP gross loss professional services | $ | (4,388 | ) | $ | (4,300 | ) | $ | (3,190 | ) | $ | (16,386 | ) | $ | (13,297 | ) | ||||||
GAAP gross loss percentage professional services | (318 | )% | (329 | )% | (271 | )% | (330 | )% | (332 | )% | |||||||||||
Stock-based compensation expense | 653 | 647 | 494 | 2,175 | 1,220 | ||||||||||||||||
Capitalization of internal-use software | (30 | ) | (33 | ) | — | (63 | ) | — | |||||||||||||
Non-GAAP gross loss professional services | $ | (3,765 | ) | $ | (3,653 | ) | $ | (2,696 | ) | $ | (14,274 | ) | $ | (12,077 | ) | ||||||
Non-GAAP gross loss percentage professional services | (272 | )% | (282 | )% | (229 | )% | (287 | )% | (302 | )% | |||||||||||
GAAP gross profit | $ | 11,660 | $ | 10,852 | $ | 7,870 | $ | 41,547 | $ | 17,833 | |||||||||||
GAAP gross margin | 54.7 | % | 55.5 | % | 54.3 | % | 55.2 | % | 39.1 | % | |||||||||||
Impact of non-GAAP adjustments | 834 | 734 | 583 | 2,591 | 1,408 | ||||||||||||||||
Non-GAAP gross profit | $ | 12,494 | $ | 11,586 | $ | 8,453 | $ | 44,138 | $ | 19,241 | |||||||||||
Non-GAAP gross margin | 58.6 | % | 59.3 | % | 58.3 | % | 58.6 | % | 42.2 | % | |||||||||||
Operating expense: | |||||||||||||||||||||
GAAP sales and marketing | $ | 16,579 | $ | 16,731 | $ | 15,798 | $ | 67,414 | $ | 62,065 | |||||||||||
Expense related to warrant | — | — | 20 | — | (2,639 | ) | |||||||||||||||
Stock-based compensation expense | (1,822 | ) | (2,058 | ) | (1,594 | ) | (7,705 | ) | (5,933 | ) | |||||||||||
Non-GAAP sales and marketing | $ | 14,757 | $ | 14,673 | $ | 14,224 | $ | 59,709 | $ | 53,493 | |||||||||||
GAAP research and development | $ | 8,224 | $ | 7,868 | $ | 6,284 | $ | 30,077 | $ | 22,917 | |||||||||||
Stock-based compensation expense | (1,154 | ) | (981 | ) | (1,081 | ) | (3,498 | ) | (2,556 | ) | |||||||||||
Capitalization of internal-use software | 620 | 841 | 129 | 2,256 | 291 | ||||||||||||||||
Non-GAAP research and development | $ | 7,690 | $ | 7,728 | $ | 5,332 | $ | 28,835 | $ | 20,652 | |||||||||||
GAAP general and administrative | $ | 5,983 | $ | 6,311 | $ | 5,536 | $ | 24,274 | $ | 19,009 | |||||||||||
Stock-based compensation expense | (1,069 | ) | (1,177 | ) | (1,349 | ) | (4,169 | ) | (4,312 | ) | |||||||||||
Non-GAAP general and administrative | $ | 4,914 | $ | 5,134 | $ | 4,187 | $ | 20,105 | $ | 14,697 | |||||||||||
GAAP operating expense | $ | 30,786 | $ | 30,910 | $ | 27,618 | $ | 121,765 | $ | 103,991 | |||||||||||
Impact of non-GAAP adjustments | (3,425 | ) | (3,375 | ) | (3,875 | ) | (13,116 | ) | (15,149 | ) | |||||||||||
Non-GAAP operating expense | $ | 27,361 | $ | 27,535 | $ | 23,743 | $ | 108,649 | $ | 88,842 | |||||||||||
Operating loss: | |||||||||||||||||||||
GAAP operating loss | $ | (19,126 | ) | $ | (20,058 | ) | $ | (19,748 | ) | $ | (80,218 | ) | $ | (86,158 | ) | ||||||
Impact of non-GAAP adjustments | 4,259 | 4,109 | 4,458 | 15,707 | 16,557 | ||||||||||||||||
Non-GAAP operating loss | $ | (14,867 | ) | $ | (15,949 | ) | $ | (15,290 | ) | $ | (64,511 | ) | $ | (69,601 | ) | ||||||
Net loss and net loss per share: | |||||||||||||||||||||
GAAP net loss | $ | (19,058 | ) | $ | (20,007 | ) | $ | (19,684 | ) | $ | (79,920 | ) | $ | (85,940 | ) | ||||||
Total pre-tax impact of non-GAAP adjustments | 4,259 | 4,109 | 4,458 | 15,707 | 16,557 | ||||||||||||||||
Income tax impact of non-GAAP adjustments | — | — | — | — | — | ||||||||||||||||
Non-GAAP net loss | $ | (14,799 | ) | $ | (15,898 | ) | $ | (15,226 | ) | $ | (64,213 | ) | $ | (69,383 | ) | ||||||
Basic and Diluted net loss per share | |||||||||||||||||||||
GAAP | $ | (0.20 | ) | $ | (0.21 | ) | $ | (0.22 | ) | $ | (0.85 | ) | $ | (1.16 | ) | ||||||
Non-GAAP | $ | (0.16 | ) | $ | (0.17 | ) | $ | (0.17 | ) | $ | (0.68 | ) | $ | (0.93 | ) | ||||||
Shares used in basic and diluted net loss per share computation | 94,969 | 94,409 | 90,467 | 93,753 | 74,381 |
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