Delaware (State or other jurisdiction of incorporation or organization) | 001-36330 (Commission File Number) | 26-1989091 (I.R.S. Employer Identification Number) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Class B Common Stock, par value $0.0001 per share | CSLT | New York Stock Exchange |
Exhibit | Description |
CASTLIGHT HEALTH, INC. | ||||
Date: | May 2, 2019 | By: | /s/ Siobhan Nolan Mangini | |
Siobhan Nolan Mangini | ||||
Chief Financial Officer (Principal Financial Officer) |
• | GAAP total revenue of $35.5 million, representing a decrease of 3% |
• | GAAP gross margin of 60.2%, compared to 59.0% |
• | Non-GAAP gross margin of 63.3%, compared to 63.0% |
• | GAAP operating loss of $10.9 million, compared to a loss of $14.6 million |
• | Non-GAAP operating loss of $5.3 million, compared to $7.7 million |
• | GAAP net loss per basic and diluted share of $0.07, compared to a net loss per basic and diluted share of $0.11 |
• | Non-GAAP net loss per basic and diluted share of $0.03, compared to a net loss per basic and diluted share of $0.06 |
• | Cash used in operations of $12.1 million, compared to $19.0 million |
• | GAAP revenue in the range of $153 million to $158 million |
• | Non-GAAP operating income in the range of $0 million to $5 million |
• | Non-GAAP net income per share of approximately $0.00 to $0.03 based on approximately 145 million to 146 million shares |
As of | |||||||
March 31, 2019 | December 31, 2018 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 66,338 | $ | 66,005 | |||
Marketable securities | — | 11,327 | |||||
Accounts receivable and other, net | 34,699 | 26,816 | |||||
Prepaid expenses and other current assets | 4,351 | 3,680 | |||||
Total current assets | 105,388 | 107,828 | |||||
Property and equipment, net | 3,754 | 3,963 | |||||
Restricted cash, non-current | 1,325 | 1,325 | |||||
Deferred commissions | 19,067 | 20,142 | |||||
Deferred professional service costs | 9,672 | 10,133 | |||||
Intangible assets, net | 15,333 | 16,209 | |||||
Goodwill | 91,785 | 91,785 | |||||
Operating lease right-of-use assets, net | 15,989 | — | |||||
Other assets | 2,209 | 2,129 | |||||
Total assets | $ | 264,522 | $ | 253,514 | |||
Liabilities and stockholders’ equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 8,760 | $ | 9,556 | |||
Accrued expenses and other current liabilities | 13,025 | 15,454 | |||||
Accrued compensation | 5,005 | 5,975 | |||||
Deferred revenue | 23,774 | 20,193 | |||||
Operating lease liabilities | 5,928 | — | |||||
Total current liabilities | 56,492 | 51,178 | |||||
Deferred revenue, non-current | 944 | 1,030 | |||||
Debt, non-current | 2,789 | 3,254 | |||||
Operating lease liabilities, non-current | 13,428 | — | |||||
Other liabilities, non-current | 1,040 | 3,381 | |||||
Total liabilities | 74,693 | 58,843 | |||||
Stockholders’ equity | 189,829 | 194,671 | |||||
Total liabilities and stockholders’ equity | $ | 264,522 | $ | 253,514 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Revenue: | |||||||
Subscription | $ | 33,806 | $ | 32,989 | |||
Professional services and other | 1,684 | 3,490 | |||||
Total revenue, net | 35,490 | 36,479 | |||||
Cost of revenue: | |||||||
Cost of subscription(1) | 8,166 | 9,174 | |||||
Cost of professional services and other(1) | 5,944 | 5,769 | |||||
Total cost of revenue | 14,110 | 14,943 | |||||
Gross profit | 21,380 | 21,536 | |||||
Operating expenses: | |||||||
Sales and marketing(1) | 9,215 | 13,912 | |||||
Research and development(1) | 15,725 | 15,371 | |||||
General and administrative(1) | 7,293 | 6,825 | |||||
Total operating expenses | 32,233 | 36,108 | |||||
Operating loss | (10,853 | ) | (14,572 | ) | |||
Other income, net | 314 | 128 | |||||
Net loss | $ | (10,539 | ) | $ | (14,444 | ) | |
Net loss per share, basic and diluted | $ | (0.07 | ) | $ | (0.11 | ) | |
Weighted-average shares used to compute basic and diluted net loss per share | 143,000 | 134,994 |
(1) | Includes stock-based compensation expense as follows: |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Cost of revenue: | |||||||
Cost of subscription | $ | 219 | $ | 242 | |||
Cost of professional services and other | 265 | 301 | |||||
Sales and marketing | 627 | 1,138 | |||||
Research and development | 1,704 | 1,654 | |||||
General and administrative | 1,162 | 1,257 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Operating activities: | |||||||
Net loss | $ | (10,539 | ) | $ | (14,444 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation and amortization | 1,344 | 1,860 | |||||
Stock-based compensation | 3,977 | 4,592 | |||||
Amortization of deferred commissions | 2,491 | 2,853 | |||||
Amortization of deferred professional service costs | 969 | 946 | |||||
Non-cash operating lease expense | 1,282 | — | |||||
Lease exit and related charges | — | 916 | |||||
Accretion and amortization of marketable securities | (126 | ) | (131 | ) | |||
Changes in operating assets and liabilities: | |||||||
Accounts receivable and other, net | (7,883 | ) | (11,196 | ) | |||
Deferred commissions | (1,416 | ) | (1,171 | ) | |||
Deferred professional service costs | (469 | ) | (742 | ) | |||
Prepaid expenses and other assets | (751 | ) | 206 | ||||
Accounts payable | (849 | ) | 1,783 | ||||
Operating lease liabilities | (1,382 | ) | — | ||||
Accrued expenses and other liabilities | (1,304 | ) | (1,237 | ) | |||
Deferred revenue | 3,495 | 3,183 | |||||
Accrued compensation | (970 | ) | (6,390 | ) | |||
Net cash used in operating activities | (12,131 | ) | (18,972 | ) | |||
Investing activities: | |||||||
Purchase of property and equipment | (204 | ) | (388 | ) | |||
Purchase of marketable securities | — | (10,025 | ) | ||||
Maturities of marketable securities | 11,453 | 15,750 | |||||
Net cash provided by investing activities | 11,249 | 5,337 | |||||
Financing activities: | |||||||
Proceeds from exercise of stock options | 1,680 | 490 | |||||
Principal payments on long-term debt | (465 | ) | — | ||||
Net cash provided by financing activities | 1,215 | 490 | |||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 333 | (13,145 | ) | ||||
Cash, cash equivalents and restricted cash at beginning of period | 67,330 | 62,644 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 67,663 | $ | 49,499 | |||
Reconciliation of cash, cash equivalents and restricted cash: | |||||||
Cash and cash equivalents | $ | 66,338 | $ | 48,174 | |||
Restricted cash | 1,325 | 1,325 | |||||
Total cash, cash equivalents and restricted cash | $ | 67,663 | $ | 49,499 |
Three Months Ended | |||||||||||
March 31, 2019 | December 31, 2018 | March 31, 2018 | |||||||||
Gross profit: | |||||||||||
GAAP gross profit subscription | $ | 25,640 | $ | 31,589 | $ | 23,815 | |||||
Stock-based compensation | 219 | 222 | 242 | ||||||||
Amortization of internal-use software | — | 120 | 219 | ||||||||
Amortization of intangibles | 587 | 678 | 678 | ||||||||
Non-GAAP gross profit subscription | $ | 26,446 | $ | 32,609 | $ | 24,954 | |||||
GAAP gross margin subscription | 75.8 | % | 80.2 | % | 72.2 | % | |||||
Non-GAAP gross margin subscription | 78.2 | % | 82.7 | % | 75.6 | % | |||||
GAAP gross loss professional services | $ | (4,260 | ) | $ | (4,210 | ) | $ | (2,279 | ) | ||
Stock-based compensation | 265 | 239 | 301 | ||||||||
Non-GAAP gross loss professional services | $ | (3,995 | ) | $ | (3,971 | ) | $ | (1,978 | ) | ||
GAAP gross margin professional services | (253.0 | )% | (156.4 | )% | (65.3 | )% | |||||
Non-GAAP gross margin professional services | (237.2 | )% | (147.5 | )% | (56.7 | )% | |||||
GAAP gross profit | $ | 21,380 | $ | 27,379 | $ | 21,536 | |||||
Impact of non-GAAP adjustments | 1,071 | 1,259 | 1,440 | ||||||||
Non-GAAP gross profit | $ | 22,451 | $ | 28,638 | $ | 22,976 | |||||
GAAP gross margin | 60.2 | % | 65.0 | % | 59.0 | % | |||||
Non-GAAP gross margin | 63.3 | % | 68.0 | % | 63.0 | % | |||||
Operating expense: | |||||||||||
GAAP sales and marketing | $ | 9,215 | $ | 10,419 | $ | 13,912 | |||||
Stock-based compensation | (627 | ) | (615 | ) | (1,138 | ) | |||||
Amortization of intangibles | (272 | ) | (273 | ) | (448 | ) | |||||
Non-GAAP sales and marketing | $ | 8,316 | $ | 9,531 | $ | 12,326 | |||||
GAAP research and development | $ | 15,725 | $ | 14,531 | $ | 15,371 | |||||
Stock-based compensation | (1,704 | ) | (1,854 | ) | (1,654 | ) | |||||
Certain legal expenses | (191 | ) | — | — | |||||||
Lease exit and related charges | — | (167 | ) | (916 | ) | ||||||
Non-GAAP research and development | $ | 13,830 | $ | 12,510 | $ | 12,801 | |||||
GAAP general and administrative | $ | 7,293 | $ | 6,220 | $ | 6,825 | |||||
Stock-based compensation | (1,162 | ) | (1,193 | ) | (1,257 | ) | |||||
Amortization of intangibles | (17 | ) | (17 | ) | (17 | ) | |||||
Certain legal expenses | (533 | ) | — | — | |||||||
Non-GAAP general and administrative | $ | 5,581 | $ | 5,010 | $ | 5,551 | |||||
GAAP operating expense | $ | 32,233 | $ | 31,170 | $ | 36,108 | |||||
Impact of non-GAAP adjustments | (4,506 | ) | (4,119 | ) | (5,430 | ) | |||||
Non-GAAP operating expense | $ | 27,727 | $ | 27,051 | $ | 30,678 | |||||
Operating loss: | |||||||||||
GAAP operating loss | $ | (10,853 | ) | $ | (3,791 | ) | $ | (14,572 | ) | ||
Impact of non-GAAP adjustments | 5,577 | 5,378 | 6,870 | ||||||||
Non-GAAP operating (loss) income | $ | (5,276 | ) | $ | 1,587 | $ | (7,702 | ) | |||
Net (loss) income and net (loss) income per share: | |||||||||||
GAAP net loss | $ | (10,539 | ) | $ | (4,039 | ) | $ | (14,444 | ) |
Total pre-tax impact of non-GAAP adjustments | 5,577 | 5,378 | 6,870 | ||||||||
Non-GAAP net (loss) income | $ | (4,962 | ) | $ | 1,339 | $ | (7,574 | ) | |||
GAAP net loss per share, basic and diluted | $ | (0.07 | ) | $ | (0.03 | ) | $ | (0.11 | ) | ||
Non-GAAP net (loss) income per share, basic and diluted | $ | (0.03 | ) | $ | 0.01 | $ | (0.06 | ) | |||
Shares used in basic and diluted net loss per share computation | 143,000 | 140,508 | 134,994 |
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