Benefitfocus Q2 Loss Widens, Revises FY Outlook, Stock Up

(RTTNews) - Benefitfocus, Inc. (BNFT), a provider of cloud-based benefits software solutions, Thursday said second-quarter loss widened from the prior year, despite higher revenues, amid a rise in expenses.

The company said it expects full year loss per share to be less than previously projected and lifted its revenue outlook for the year. The stock gained close to 7 percent in the extended trade.

Net loss widened to $18.2 million from $9.6 million last year, but loss per share narrowed to $0.72 from $2.00.

Non-GAAP net loss totaled $15.7 million, or $0.62 per share while it was $8.8 million, or $0.41 per share in the prior year quarter.

On average, six analysts polled by Thomson Reuters expected the company to report a loss of $0.70 per share. Analysts' estimates typically exclude special items.

Revenue increased 33 percent to $32.34 million from $24.33 million a year ago, while analysts expected revenues of $31.31 million.

Employer revenue climbed 59 percent from last year to $14.3 million, and Software revenue improved 32 percent to $29.8 million.

Total operating expenses climbed to $28.71 million from $19.09 million in the prior year.

Looking ahead to the third quarter, the company expects non-GAAP net loss to be in the range of $17.8 million to $18.3 million, or $0.70 to $0.72 per share and revenue in the range of $33.5 million to $34.0 million.

Analysts currently expect loss of $0.67 per share on revenues of $33.54 million.

For full year 2014, the company now expects non-GAAP net loss to be in the range of $59.0 million to $61.0 million, or $2.35 to $2.42 per share and revenue in the range of $133.6 million to $135.6 million.

Analysts now expect loss of $2.47 per share on revenues of $133.53 million.

Earlier, the company expected non-GAAP net loss to be in the range of $59.0 million to $63.0 million, or $2.37 to $2.53 per share and revenue in the range of $130.6 million to $134.6 million.

BNFT closed up 0.7 percent at $38.58, and gained 6.8 percent in the extended trade.