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 November 2, 2016, entitled “Castlight Health Announces Third Quarter 2016 Results” |
CASTLIGHT HEALTH, INC. | |||
Date: November 2, 2016 | By: | /s/ Siobhan Nolan Mangini | |
Siobhan Nolan Mangini | |||
Chief Financial Officer (Principal Financial Officer) |
Exhibit | Description |
99.1 | Press Release, dated November 2, 2016, entitled “Castlight Health Announces Third Quarter 2016 Results” |
• | Total revenue for the third quarter of 2016 was $25.5 million, an increase of 31% from the third quarter of 2015. Subscription revenue was $23.9 million, an increase of 31% on a year-over-year basis. |
• | Gross margin for the third quarter of 2016 was 68.8%, compared to a gross margin of 55.5% in the third quarter of 2015. Non-GAAP gross margin for the third quarter of 2016 was 72.1% compared to a non-GAAP gross margin of 59.3% in the third quarter of 2015. |
• | Operating loss for the third quarter of 2016 was $11.5 million, compared to an operating loss of $20.1 million in the third quarter of 2015. Non-GAAP operating loss for the third quarter of 2016 was $5.5 million, compared to a non-GAAP operating loss of $15.9 million in the third quarter of 2015. |
• | Net loss per basic and diluted share was $0.11 in the third quarter of 2016, compared to a net loss per basic and diluted share of $0.21 in the third quarter of 2015. The non-GAAP net loss per basic and diluted share for the third quarter of 2016 was $0.05, compared to a net loss per basic and diluted share of $0.17 in the third quarter of 2015. For both GAAP and non-GAAP purposes, the weighted average basic and diluted share count for the third quarter of 2016 was 103.1 million compared to 94.4 million in the third quarter of 2015. |
• | Total cash, cash equivalents and marketable securities were $116.4 million at the end of the third quarter of 2016. Cash used in operations for the third quarter of 2016 was $9.4 million, compared to $14.5 million used in operations in the third quarter of 2015. |
As of | |||||||
September 30, 2016 | December 31, 2015 | ||||||
(unaudited) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 55,108 | $ | 19,150 | |||
Marketable securities | 61,326 | 101,274 | |||||
Accounts receivable, net | 15,888 | 12,751 | |||||
Deferred commissions | 7,746 | 5,438 | |||||
Prepaid expenses and other current assets | 3,884 | 3,772 | |||||
Total current assets | 143,952 | 142,385 | |||||
Property and equipment, net | 5,912 | 6,896 | |||||
Marketable securities, noncurrent | — | 13,335 | |||||
Restricted cash, noncurrent | 1,000 | 1,000 | |||||
Deferred commissions, noncurrent | 3,861 | 4,923 | |||||
Other assets | 4,691 | 4,735 | |||||
Total assets | $ | 159,416 | $ | 173,274 | |||
Liabilities and stockholders’ equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 3,603 | $ | 3,384 | |||
Accrued expenses and other current liabilities | 4,894 | 4,550 | |||||
Accrued compensation | 7,146 | 11,477 | |||||
Deferred revenue | 30,730 | 26,590 | |||||
Total current liabilities | 46,373 | 46,001 | |||||
Deferred revenue, noncurrent | 6,700 | 7,522 | |||||
Other liabilities, noncurrent | 1,255 | 1,397 | |||||
Total liabilities | 54,328 | 54,920 | |||||
Stockholders’ equity | 105,088 | 118,354 | |||||
Total liabilities and stockholders’ equity | $ | 159,416 | $ | 173,274 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenue: | |||||||||||||||
Subscription | $ | 23,867 | $ | 18,233 | $ | 66,859 | $ | 50,417 | |||||||
Professional services | 1,634 | 1,306 | 4,944 | 3,583 | |||||||||||
Total revenue | 25,501 | 19,539 | 71,803 | 54,000 | |||||||||||
Cost of revenue: | |||||||||||||||
Cost of subscription (1) | 3,988 | 3,081 | 12,218 | 8,532 | |||||||||||
Cost of professional services (1) | 3,978 | 5,606 | 13,941 | 15,581 | |||||||||||
Total cost of revenue | 7,966 | 8,687 | 26,159 | 24,113 | |||||||||||
Gross profit | 17,535 | 10,852 | 45,644 | 29,887 | |||||||||||
Operating expenses: | |||||||||||||||
Sales and marketing (1) | 13,143 | 16,731 | 44,877 | 50,835 | |||||||||||
Research and development (1) | 10,573 | 7,868 | 30,619 | 21,853 | |||||||||||
General and administrative (1) | 5,338 | 6,311 | 19,902 | 18,291 | |||||||||||
Total operating expenses | 29,054 | 30,910 | 95,398 | 90,979 | |||||||||||
Operating loss | (11,519 | ) | (20,058 | ) | (49,754 | ) | (61,092 | ) | |||||||
Other income, net | 116 | 51 | 304 | 230 | |||||||||||
Net loss | $ | (11,403 | ) | $ | (20,007 | ) | $ | (49,450 | ) | $ | (60,862 | ) | |||
Net loss per share, basic and diluted | $ | (0.11 | ) | $ | (0.21 | ) | $ | (0.50 | ) | $ | (0.65 | ) | |||
Weighted-average shares used to compute basic and diluted net loss per share | 103,147 | 94,409 | 99,734 | 93,343 |
(1) | Includes stock-based compensation expense as follows: |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Cost of revenue: | |||||||||||||||
Cost of subscription | $ | 139 | $ | 96 | $ | 367 | $ | 196 | |||||||
Cost of professional services | 456 | 647 | 1,468 | 1,522 | |||||||||||
Sales and marketing | 2,190 | 2,058 | 6,644 | 5,883 | |||||||||||
Research and development | 1,631 | 981 | 4,300 | 2,344 | |||||||||||
General and administrative | 1,236 | 1,177 | 3,476 | 3,100 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Operating activities: | |||||||||||||||
Net loss | $ | (11,403 | ) | $ | (20,007 | ) | $ | (49,450 | ) | $ | (60,862 | ) | |||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||||||
Depreciation and amortization | 822 | 468 | 2,407 | 1,378 | |||||||||||
Stock-based compensation | 5,652 | 4,959 | 16,255 | 13,045 | |||||||||||
Amortization of deferred commissions | 1,042 | 917 | 3,157 | 2,576 | |||||||||||
Accretion and amortization of marketable securities | 101 | 299 | 406 | 1,126 | |||||||||||
Changes in operating assets and liabilities: | |||||||||||||||
Accounts receivable | (3,397 | ) | (2,597 | ) | (3,137 | ) | (2,548 | ) | |||||||
Deferred commissions | (1,479 | ) | (1,595 | ) | (4,403 | ) | (3,346 | ) | |||||||
Prepaid expenses and other assets | 745 | 792 | (68 | ) | (1,026 | ) | |||||||||
Accounts payable | 410 | (542 | ) | 300 | 716 | ||||||||||
Accrued expenses and other liabilities | (3,583 | ) | 1,429 | (4,046 | ) | (1,740 | ) | ||||||||
Deferred revenue | 1,733 | 1,367 | 3,318 | 5,770 | |||||||||||
Net cash used in operating activities | (9,357 | ) | (14,510 | ) | (35,261 | ) | (44,911 | ) | |||||||
Investing activities: | |||||||||||||||
Restricted cash | — | — | — | (1,000 | ) | ||||||||||
Investment in related party | — | (1,000 | ) | — | (4,125 | ) | |||||||||
Purchase of property and equipment | (345 | ) | (1,806 | ) | (1,587 | ) | (3,499 | ) | |||||||
Purchase of marketable securities | (11,971 | ) | (67,366 | ) | (73,163 | ) | (86,324 | ) | |||||||
Sales of marketable securities | — | — | — | 5,000 | |||||||||||
Maturities of marketable securities | 35,570 | 78,466 | 126,157 | 140,019 | |||||||||||
Net cash provided by investing activities | 23,254 | 8,294 | 51,407 | 50,071 | |||||||||||
Financing activities: | |||||||||||||||
Proceeds from the exercise of stock options | 636 | 354 | 2,576 | 3,180 | |||||||||||
Proceeds from issuance of common stock and warrants | — | — | 17,358 | — | |||||||||||
Payments of issuance costs | (76 | ) | — | (122 | ) | (94 | ) | ||||||||
Net cash provided by financing activities | 560 | 354 | 19,812 | 3,086 | |||||||||||
Net increase (decrease) in cash and cash equivalents | 14,457 | (5,862 | ) | 35,958 | 8,246 | ||||||||||
Cash and cash equivalents at beginning of period | 40,651 | 31,533 | 19,150 | 17,425 | |||||||||||
Cash and cash equivalents at end of period | $ | 55,108 | $ | 25,671 | $ | 55,108 | $ | 25,671 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||||||
2016 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||
Gross profit: | |||||||||||||||||||
GAAP gross profit subscription | $ | 19,879 | $ | 17,861 | $ | 15,152 | $ | 54,641 | $ | 41,885 | |||||||||
Stock-based compensation | 139 | 120 | 96 | 367 | 196 | ||||||||||||||
Amortization of internal-use software | 244 | 244 | 24 | 732 | 72 | ||||||||||||||
Reduction in workforce | — | 5 | — | 5 | — | ||||||||||||||
Non-GAAP gross profit subscription | $ | 20,262 | $ | 18,230 | $ | 15,272 | $ | 55,745 | $ | 42,153 | |||||||||
GAAP gross margin subscription | 83.3 | % | 81.4 | % | 83.1 | % | 81.7 | % | 83.1 | % | |||||||||
Non-GAAP gross margin subscription | 84.9 | % | 83.0 | % | 83.8 | % | 83.4 | % | 83.6 | % | |||||||||
GAAP gross loss professional services | $ | (2,344 | ) | $ | (3,220 | ) | $ | (4,300 | ) | $ | (8,997 | ) | $ | (11,998 | ) | ||||
Stock-based compensation | 456 | 535 | 647 | 1,468 | 1,522 | ||||||||||||||
Capitalization of internal-use software | — | — | (33 | ) | — | (33 | ) | ||||||||||||
Reduction in workforce | 4 | 99 | — | 103 | — | ||||||||||||||
Non-GAAP gross loss professional services | $ | (1,884 | ) | $ | (2,586 | ) | $ | (3,686 | ) | $ | (7,426 | ) | $ | (10,509 | ) | ||||
GAAP gross margin professional services | (143 | )% | (198 | )% | (329 | )% | (182 | )% | (335 | )% | |||||||||
Non-GAAP gross margin professional services | (115 | )% | (159 | )% | (282 | )% | (150 | )% | (293 | )% | |||||||||
GAAP gross profit | $ | 17,535 | $ | 14,641 | $ | 10,852 | $ | 45,644 | $ | 29,887 | |||||||||
Impact of non-GAAP adjustments | 843 | 1,003 | 734 | 2,675 | 1,757 | ||||||||||||||
Non-GAAP gross profit | $ | 18,378 | $ | 15,644 | $ | 11,586 | $ | 48,319 | $ | 31,644 | |||||||||
GAAP gross margin | 68.8 | % | 62.1 | % | 55.5 | % | 63.6 | % | 55.3 | % | |||||||||
Non-GAAP gross margin | 72.1 | % | 66.3 | % | 59.3 | % | 67.3 | % | 58.6 | % | |||||||||
Operating expense: | |||||||||||||||||||
GAAP sales and marketing | $ | 13,143 | $ | 15,452 | $ | 16,731 | $ | 44,877 | $ | 50,835 | |||||||||
Stock-based compensation | (2,190 | ) | (2,219 | ) | (2,058 | ) | (6,644 | ) | (5,883 | ) | |||||||||
Reduction in workforce | (48 | ) | (374 | ) | — | (422 | ) | — | |||||||||||
Non-GAAP sales and marketing | $ | 10,905 | $ | 12,859 | $ | 14,673 | $ | 37,811 | $ | 44,952 | |||||||||
GAAP research and development | $ | 10,573 | $ | 9,961 | $ | 7,868 | $ | 30,619 | $ | 21,853 | |||||||||
Stock-based compensation | (1,631 | ) | (1,264 | ) | (981 | ) | (4,300 | ) | (2,344 | ) | |||||||||
Capitalization of internal-use software | — | — | 841 | — | 1,636 | ||||||||||||||
Reduction in workforce | (18 | ) | (118 | ) | — | (136 | ) | — | |||||||||||
Non-GAAP research and development | $ | 8,924 | $ | 8,579 | $ | 7,728 | $ | 26,183 | $ | 21,145 | |||||||||
GAAP general and administrative | $ | 5,338 | $ | 6,019 | $ | 6,311 | $ | 19,902 | $ | 18,291 | |||||||||
Stock-based compensation | (1,236 | ) | (971 | ) | (1,177 | ) | (3,476 | ) | (3,100 | ) | |||||||||
Litigation settlement | — | (141 | ) | — | (2,876 | ) | — | ||||||||||||
Reduction in workforce | (10 | ) | (80 | ) | — | (90 | ) | — | |||||||||||
Non-GAAP general and administrative | $ | 4,092 | $ | 4,827 | $ | 5,134 | $ | 13,460 | $ | 15,191 | |||||||||
GAAP operating expense | $ | 29,054 | $ | 31,432 | $ | 30,910 | $ | 95,398 | $ | 90,979 | |||||||||
Impact of non-GAAP adjustments | (5,133 | ) | (5,167 | ) | (3,375 | ) | (17,944 | ) | (9,691 | ) | |||||||||
Non-GAAP operating expense | $ | 23,921 | $ | 26,265 | $ | 27,535 | $ | 77,454 | $ | 81,288 | |||||||||
Operating loss: | |||||||||||||||||||
GAAP operating loss | $ | (11,519 | ) | $ | (16,791 | ) | $ | (20,058 | ) | $ | (49,754 | ) | $ | (61,092 | ) | ||||
Impact of non-GAAP adjustments | 5,976 | 6,170 | 4,109 | 20,619 | 11,448 | ||||||||||||||
Non-GAAP operating loss | $ | (5,543 | ) | $ | (10,621 | ) | $ | (15,949 | ) | $ | (29,135 | ) | $ | (49,644 | ) | ||||
Net loss and net loss per share: | |||||||||||||||||||
GAAP net loss | $ | (11,403 | ) | $ | (16,692 | ) | $ | (20,007 | ) | $ | (49,450 | ) | $ | (60,862 | ) | ||||
Total pre-tax impact of non-GAAP adjustments | 5,976 | 6,170 | 4,109 | 20,619 | 11,448 | ||||||||||||||
Income tax impact of non-GAAP adjustments | — | — | — | — | — | ||||||||||||||
Non-GAAP net loss | $ | (5,427 | ) | $ | (10,522 | ) | $ | (15,898 | ) | $ | (28,831 | ) | $ | (49,414 | ) | ||||
GAAP net loss per share, basic and diluted | $ | (0.11 | ) | $ | (0.17 | ) | $ | (0.21 | ) | $ | (0.50 | ) | $ | (0.65 | ) | ||||
Non-GAAP net loss per share, basic and diluted | $ | (0.05 | ) | $ | (0.11 | ) | $ | (0.17 | ) | $ | (0.29 | ) | $ | (0.53 | ) | ||||
Shares used in basic and diluted net loss per share computation | 103,147 | 99,728 | 94,409 | 99,734 | 93,343 |
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