Benefitfocus (BNFT) 10-Q 4 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Jul. 28, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Trading Symbol	BNFT
Entity Registrant Name	Benefitfocus,Inc.
Entity Central Index Key	1,576,169
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		31,179,802

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 59,395	$ 56,853
Marketable securities	0	2,007
Accounts receivable, net	26,952	28,340
Accounts receivable, related party, net	907	4,626
Prepaid expenses and other current assets	6,247	4,449
Total current assets	93,501	96,275
Property and equipment, net	76,410	80,518
Intangible assets, net	279	408
Goodwill	1,634	1,634
Other non-current assets	1,216	1,575
Total assets	173,040	180,410
Current liabilities:
Accounts payable	5,146	5,829
Accrued expenses	8,490	10,867
Accrued compensation and benefits	14,678	17,347
Deferred revenue, current portion	32,307	35,426
Revolving line of credit, current portion	20,000	20,000
Financing and capital lease obligations, current portion	3,232	2,604
Total current liabilities	83,853	92,073
Deferred revenue, net of current portion	32,791	40,412
Revolving line of credit, net of current portion	32,246	20,246
Financing and capital lease obligations, net of current portion	56,654	57,934
Other non-current liabilities	2,590	3,056
Total liabilities	208,134	213,721
Commitments and contingencies
Stockholders' deficit:
Preferred stock, par value $0.001, 5,000,000 shares authorized, no shares issued and outstanding at June 30, 2017 and December 31, 2016	0	0
Common stock, par value $0.001, 50,000,000 shares authorized, 31,134,394 and 30,429,014 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively	31	30
Additional paid-in capital	345,860	335,059
Accumulated deficit	(380,985)	(368,400)
Total stockholders' deficit	(35,094)	(33,311)
Total liabilities and stockholders' deficit	$ 173,040	$ 180,410

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2017	Dec. 31, 2016
Statement Of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	31,134,394	30,429,014
Common stock, shares outstanding	31,134,394	30,429,014

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Statement [Abstract]
Revenue	$ 63,348	$ 57,874	$ 127,519	$ 112,666
Cost of revenue	28,828	29,750	60,429	59,047
Gross profit	34,520	28,124	67,090	53,619
Operating expenses:
Sales and marketing	17,646	14,761	34,923	28,335
Research and development	12,473	14,180	24,654	29,195
General and administrative	5,877	8,274	13,634	16,669
Total operating expenses	35,996	37,215	73,211	74,199
Loss from operations	(1,476)	(9,091)	(6,121)	(20,580)
Other income (expense):
Interest income	47	36	74	92
Interest expense on building lease financing obligations	(1,861)	(1,710)	(3,721)	(3,426)
Interest expense on other borrowings	(1,210)	(231)	(2,272)	(429)
Other expense	(1)	(3)	(149)	(3)
Total other expense, net	(3,025)	(1,908)	(6,068)	(3,766)
Loss before income taxes	(4,501)	(10,999)	(12,189)	(24,346)
Income tax expense	5	5	5	10
Net loss	(4,506)	(11,004)	(12,194)	(24,356)
Comprehensive loss	$ (4,506)	$ (11,004)	$ (12,194)	$ (24,356)
Net loss per common share:
Basic and diluted	$ (0.14)	$ (0.37)	$ (0.40)	$ (0.83)
Weighted-average common shares outstanding:
Basic and diluted	31,076,995	29,459,341	30,868,888	29,336,270

Consolidated Statement of Chang

Consolidated Statement of Changes in Stockholders' Deficit - 6 months ended Jun. 30, 2017 - USD ($) $ in Thousands	Total	Common Stock, $0.001 Par Value	Additional Paid-in Capital	Accumulated Deficit
Balance (in shares) at Dec. 31, 2016	30,429,014	30,429,014
Balance at Dec. 31, 2016	$ (33,311)	$ 30	$ 335,059	$ (368,400)
Cumulative effect adjustment from adoption of new accounting standard | Accounting Standards Update 2016-09			391	(391)
Exercise of stock options (in shares)		412,538
Exercise of stock options	3,049	$ 1	3,048
Issuance of common stock upon vesting of restricted stock units (in shares)		288,877
Issuance of common stock under Employee Stock Purchase Plan, or ESPP (in shares)		3,965
Issuance of common stock under Employee Stock Purchase Plan, or ESPP	112		112
Stock-based compensation expense	7,250		7,250
Net loss	$ (12,194)			(12,194)
Balance (in shares) at Jun. 30, 2017	31,134,394	31,134,394
Balance at Jun. 30, 2017	$ (35,094)	$ 31	$ 345,860	$ (380,985)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities
Net loss	$ (12,194)	$ (24,356)
Adjustments to reconcile net loss to net cash and cash equivalents used in operating activities:
Depreciation and amortization	7,945	6,310
Stock-based compensation expense	7,250	9,183
Interest accrual on financing obligation	3,747	3,426
Loss on disposal or impairment of property and equipment	149	7
Provision for doubtful accounts	61	(22)
Changes in operating assets and liabilities:
Accounts receivable, net	5,047	(1,582)
Accrued interest on short-term investments	7	158
Prepaid expenses and other current assets	(1,798)	(72)
Other non-current assets	359	291
Accounts payable	(1,288)	(1,279)
Accrued expenses	(1,805)	741
Accrued compensation and benefits	(2,669)	(3,196)
Deferred revenue	(10,740)	(9,932)
Other non-current liabilities	(467)	87
Net cash and cash equivalents used in operating activities	(6,396)	(20,236)
Cash flows from investing activities
Purchases of short-term investments held to maturity	0	(2,004)
Proceeds from maturity of short-term investments held to maturity	2,000	31,225
Purchases of property and equipment	(3,825)	(4,964)
Net cash and cash equivalents (used in) provided by investing activities	(1,825)	24,257
Cash flows from financing activities
Draws on revolving line of credit	53,000	34,000
Payments on revolving line of credit	(41,000)	(25,000)
Proceeds from exercises of stock options and ESPP	3,161	1,593
Remittance of taxes upon vesting of restricted stock units	0	(202)
Payments on financing and capital lease obligations	(4,398)	(5,557)
Net cash and cash equivalents provided by financing activities	10,763	4,834
Net increase in cash and cash equivalents	2,542	8,855
Cash and cash equivalents, beginning of period	56,853	48,074
Cash and cash equivalents, end of period	59,395	56,929
Supplemental disclosure of non-cash investing and financing activities
Property and equipment purchases in accounts payable and accrued expenses	732	1,397
Property and equipment purchased with financing and capital lease obligations	0	2,099
Post contract support purchased with financing obligations	$ 0	$ 1,182

Organization and Description of

Organization and Description of Business	6 Months Ended
	Jun. 30, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Organization and Description of Business	1. Organization and Description of Business Benefitfocus, Inc. (the “Company”) provides a leading cloud-based benefits management platform for consumers, employers, insurance carriers and brokers under a software-as-a-service (“SaaS”) model. The financial statements of the Company include the financial position and operations of its wholly owned subsidiaries, Benefitfocus.com, Inc. and BenefitStore, Inc.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Principles of Consolidation These consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. We are not the primary beneficiary of, nor do we have a controlling financial interest in, any variable interest entity. Accordingly, we have not consolidated any variable interest entity. Interim Unaudited Consolidated Financial Information The accompanying unaudited consolidated financial statements and footnotes have been prepared in accordance with GAAP as contained in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (the “Codification” or “ASC”) for interim financial information, and with Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the interim financial information includes all adjustments of a normal recurring nature necessary for a fair presentation of the results of operations, financial position, changes in stockholders’ equity and cash flows. The results of operations for the Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Such estimates include revenue recognition and the customer relationship period, allowances for doubtful accounts and returns, valuations of deferred income taxes, long-lived assets, warrants, capitalizable software development costs and the related amortization, stock-based compensation, the determination of the useful lives of assets, and the impairment assessment of acquired intangibles and goodwill. Determination of these transactions and account balances are based on the Company’s estimates and judgments. These estimates are based on the Company’s knowledge of current events and actions it may undertake in the future as well as on various other assumptions that it believes to be reasonable. Actual results could differ materially from these estimates. Revenue and Deferred Revenue The Company derives the majority of its revenue from software services fees, which consist primarily of monthly subscription fees paid by customers for access to and usage of the Company’s cloud-based benefits software solutions for a specified contract term. The Company also derives revenue from professional services which primarily include fees related to the integration of customers’ systems with the Company’s platform, which typically includes discovery, configuration, deployment, testing, and training. The Company recognizes revenue when there is persuasive evidence of an arrangement, the service has been provided, the fees to be paid by the customer are fixed and determinable and collectability is reasonably assured. The Company considers delivery of its cloud-based software services has commenced once access to a configured and live instance to its platform has been granted to the customer. The Company’s arrangements generally contain multiple elements comprised of software services and professional services. The Company evaluates each element in an arrangement to determine whether it represents a separate unit of accounting. An element constitutes a separate unit of accounting when the delivered item has standalone value and delivery of the undelivered element is probable and within the Company’s control. When multiple deliverables included in an arrangement are separable into different units of accounting, the arrangement consideration is allocated to the identified units of accounting based on their relative selling price. Multiple deliverable arrangements accounting guidance provides a hierarchy to use when determining the relative selling price for each unit of accounting. Vendor-specific objective evidence (“VSOE”) of selling price, based on the price at which the item is regularly sold by the vendor on a standalone basis, should be used if it exists. If VSOE of selling price is not available, third-party evidence (“TPE”) of selling price is used to establish the selling price if it exists. VSOE and TPE do not currently exist for any of the Company’s deliverables. Accordingly, for arrangements with multiple deliverables that can be separated into different units of accounting, the arrangement consideration is allocated to the separate units of accounting based on the Company’s best estimate of selling price. The amount of arrangement consideration allocated is limited by contingent revenues, if any. The Company has established standalone value for Benefitfocus Marketplace implementation services in the Employer segment. Accordingly, revenues related to implementation services for the Benefitfocus Marketplace solution in the Employer segment are recognized separately from the revenues earned from the Employer software subscription services. Revenues related to such implementation services are recognized at the time that the professional services have been completed. Certain of the Company’s other professional services, including implementation services related to the Carrier segment, are not sold separately from the software services and there is no alternative use for them. As such, the Company has determined that those professional services do not have standalone value. Accordingly, software services and professional services are combined and recognized as a single unit of accounting. The Company generally recognizes software services fees monthly based on the number of employees covered by the relevant benefits plans at contracted rates for a specified period of time, once the criteria for revenue recognition described above have been satisfied. The Company recognizes revenue on Benefitfocus Marketplace implementation services in the Employer segment that have standalone value at the time the services have been completed and the related software services have commenced. The Company defers recognition of revenue for fees from professional services that do not have standalone value and begins recognizing such revenue once the services are delivered and the related software services have commenced, ratably over the longer of the contract term or the estimated expected life of the customer relationship. Costs incurred by the Company in connection with providing such professional services are charged to expense as incurred and are included in “Cost of revenue.” Concentrations of Credit Risk The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash equivalents, marketable securities and accounts receivable. All of the Company’s cash and cash equivalents are held at financial institutions that management believes to be of high credit quality. The bank deposits of the Company might, at times, exceed federally insured limits and are generally uninsured and uncollateralized. The Company has not experienced any losses on cash and cash equivalents to date. To manage credit risk related to marketable securities, the Company invests in various types of highly rated corporate bonds, commercial paper, and various U.S. government backed securities with maturities of less than two years. The weighted average maturity of the portfolio of investments must not exceed nine months, per the Company’s investment policy. To manage accounts receivable risk, the Company evaluates the creditworthiness of its customers and maintains an allowance for doubtful accounts. Accounts receivable are unsecured and derived from revenue earned from customers located in the United States. Mercer LLC (“Mercer”), a related party, represented approximately 14% of the total accounts receivable at December 31, 2016. Revenue from Mercer was approximately 10% and 12% of the total revenue for the three months ended June 30, 2017 and 2016, respectively and 11% in each of the six-month periods ended June 30, 2017 and 2016. For more information regarding Mercer revenue, please see Note 11. Accounts receivable from one other customer approximated 13% of the total accounts receivable at December 31, 2016. Accounts Receivable and Allowance for Doubtful Accounts and Returns Accounts receivable are stated at realizable value, net of allowances for doubtful accounts and returns. The Company utilizes the allowance method to provide for doubtful accounts based on management’s evaluation of the collectability of amounts due, and other relevant factors. Bad debt expense is recorded in general and administrative expense on the consolidated statements of operations and comprehensive loss. The Company’s estimate is based on historical collection experience and a review of the current status of accounts receivable. Historically, actual write-offs for uncollectible accounts have not significantly differed from the Company’s estimates. The Company removes recorded receivables and the associated allowances when they are deemed permanently uncollectible. However, if bad debts are higher than expected, future write-offs will be greater than the Company’s estimates. The allowance for doubtful accounts was $708 and $691 as of June 30, 2017 and December 31, 2016, respectively. The allowances for returns are accounted for as reductions of revenue and are estimated based on the Company’s periodic assessment of historical experience and trends. The Company considers factors such as the time lag since the initiation of revenue recognition, historical reasons for adjustments, new customer volume, complexity of billing arrangements, timing of software availability, and past due customer billings. The allowance for returns was $3,312 and $3,904 as of June 30, 2017 and December 31, 2016, respectively. Capitalized Software Development Costs The Company capitalizes certain costs related to its software developed or obtained for internal use. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. Internal and external costs incurred during the application development stage, including upgrades and enhancements representing modifications that will result in significant additional functionality, are capitalized. Software maintenance and training costs are expensed as incurred. Capitalized costs are recorded as part of property and equipment and are amortized on a straight-line basis to cost of revenue over the software’s estimated useful life, which is three years. The Company evaluates these assets for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. In the three months ended June 30, 2017 and 2016, the Company capitalized software development costs of $1,102 and $1,501, respectively, and amortized capitalized software development costs of $794 and $693, respectively. In the six months ended June 30, 2017 and 2016, the Company capitalized software development costs of $2,329 and $2,985, respectively, and amortized capitalized software development costs of $1,625 and $1,319, respectively. The net book value of capitalized software development costs was $7,139 and $6,435 at June 30, 2017 and December 31, 2016, respectively. Comprehensive Loss The Company’s net loss equals comprehensive loss for all periods presented. Recently Adopted Accounting Standards The Company adopted the guidance in Accounting Standards Update ("ASU") 2016-09, “Compensation - Stock Compensation (Topic 718) - Improvements to Employee Share-Based Payment Accounting,” on January 1, 2017. Under this ASU, entities are permitted to make an accounting policy election to either estimate forfeitures on share-based payment awards, as previously required, or to recognize forfeitures as they occur. The Company has elected to recognize forfeitures as they occur and the impact of that change in accounting policy has been recorded as a $391 cumulative effect adjustment to its accumulated deficit as of January 1, 2017. Additionally, ASU 2016-09 requires that all income tax effects related to settlements of share-based payment awards be reported in earnings as an increase or decrease to income tax expense (benefit), net. Previously, income tax benefits at settlement of an award were reported as an increase (or decrease) to additional paid-in capital to the extent that those benefits were greater than (or less than) the income tax benefits reported in earnings during the award's vesting period. The requirement to report those income tax effects in earnings has been applied on a prospective basis to settlements occurring on or after January 1, 2017 and the impact of applying that guidance was not material to the condensed consolidated financial statements for the three and six months ended June 30, 2017. ASU 2016-09 also requires that all income tax-related cash flows resulting from share-based payments be reported as operating activities in the statement of cash flows. Previously, income tax benefits at settlement of an award were reported as a reduction to operating cash flows and an increase to financing cash flows to the extent that those benefits exceeded the income tax benefits reported in earnings during the award's vesting period. The Company has elected to apply that change in cash flow classification on a prospective basis. However, there is no impact to the statement of cash flows for the three and six months ended June 30, 2017 as the Company did not have any cash flows related to excess tax benefits during that time. The remaining provisions of ASU 2016-09 did not have a material impact on the accompanying consolidated financial statements. Accounting Standards Not Yet Adopted In May 2017, the FASB issued ASU No. 2017-09, “Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting.” The purpose of this ASU is to reduce both the diversity in practice and the cost and complexity when applying Topic 718 to a change to the terms and conditions of share-based payment awards. This guidance is effective for the Company beginning January 1, 2018. Early adoption is permitted. The amendments in this ASU should be applied prospectively to an award modified on or after the adoption date. The Company is currently evaluating the impact of this updated standard on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The purpose of this ASU is to require a financial asset measured at amortized cost basis to be presented at the net amount expected to be collected. Credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses. This ASU is effective for interim and annual reporting periods starting January 1, 2020. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” The amendments in this update require lessees, among other things, to recognize lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under previous authoritative guidance. This update also introduces new disclosure requirements for leasing arrangements. ASU 2016-02 will be effective for the Company beginning January 1, 2019, but early adoption is permitted. The Company is currently evaluating the impact of this update on the consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which amends the revenue recognition requirements in the FASB Accounting Standards Codification. Under the new standard, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration that the entity expects to receive in exchange for those goods and services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The FASB has recently issued several amendments to the standard, including clarification on accounting for licenses of intellectual property and identifying performance obligations. The standard permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective), or retrospectively with the cumulative effect of initially applying this statement recognized at the date of initial application (modified retrospective transition method). The new standard will be effective for the Company beginning January 1, 2018, with an option to early adopt. The Company plans to adopt the standard on the effective date but has not made a determination on the adoption method. The Company is currently assessing the impact of the new standard on its accounting policies, processes, and controls, including system requirements, and has assigned internal resources and engaged third party service providers to assist in its assessment. Based on the Company’s current assessment, areas affected by the Company’s adoption of the revenue recognition standard will be related to the estimation of variable consideration, the accounting for contract modifications, and the allocation of the transaction price to the Company’s multiple performance obligations. In addition, the Company expects an impact from the adoption of the new standard related to the Company’s costs to fulfill certain contracts as well as its costs to obtain contracts with customers, which are both currently expensed as incurred. The Company is also continuing to review the impact of this standard on potential disclosure changes in its consolidated financial statements as well as the transition approach that will be applied. While the Company continues to assess the potential impacts of the new standard, including the areas described above, and anticipates the standard could have a material impact on its consolidated financial statements, the Company does not know or cannot reasonably estimate quantitative information related to the impact of the new standard on the Company’s financial statements at this time.

Net Loss Per Common Share

Net Loss Per Common Share	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Net Loss Per Common Share	3. Net Loss Per Common Share Diluted loss per common share is the same as basic loss per common share for all periods presented because the effects of potentially dilutive items were anti-dilutive given the Company’s net loss. The following common share equivalent securities have been excluded from the calculation of weighted average common shares outstanding because the effect is anti-dilutive for the periods presented: Three Months Ended June 30, Six Months Ended June 30, Anti-Dilutive Common Share Equivalents 2017 2016 2017 2016 Restricted stock units 1,808,890 1,474,403 1,808,890 1,474,403 Stock options 314,937 1,458,140 314,937 1,458,140 Warrant to purchase common stock 580,813 580,813 580,813 580,813 Employee Stock Purchase Plan 4,204 - 4,204 - Total anti-dilutive common share equivalents 2,708,844 3,513,356 2,708,844 3,513,356 Basic and diluted net loss per common share is calculated as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Numerator: Net loss $ (4,506 ) $ (11,004 ) $ (12,194 ) $ (24,356 ) Net loss attributable to common stockholders $ (4,506 ) $ (11,004 ) $ (12,194 ) $ (24,356 ) Denominator: Weighted-average common shares outstanding, basic and diluted 31,076,995 29,459,341 30,868,888 29,336,270 Net loss per common share, basic and diluted $ (0.14 ) $ (0.37 ) $ (0.40 ) $ (0.83 )

Fair Value Measurement

Fair Value Measurement	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurement	4. Fair Value Measurement The carrying amounts of certain of the Company’s financial instruments, including cash and cash equivalents, net accounts receivable, accounts payable and other accrued liabilities, and accrued compensation and benefits, approximate fair value due to their short-term nature. The carrying value of the Company’s financing obligations and revolving line of credit approximates fair value, considering the borrowing rates currently available to the Company with similar terms and credit risks. The Company uses a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement. The hierarchy requires the Company to use observable inputs when available, and to minimize the use of unobservable inputs when determining fair value. The three tiers are defined as follows: Level 1. Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2. Other inputs that are directly or indirectly observable in the marketplace. Level 3. Unobservable inputs for which there is little or no market data, which require the Company to develop its own assumptions. Assets and Liabilities Measured at Fair Value on a Recurring Basis The Company evaluates its financial assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level to classify them for each reporting period. This determination requires significant judgments to be made. The following tables present information about the Company’s assets and liabilities that are measured at fair value on a recurring basis using the above categories, as of the periods presented. June 30, 2017 Description Level 1 Level 2 Level 3 Total Cash Equivalents: Money market mutual funds (1) $ 52,922 $ — $ — $ 52,922 Total assets $ 52,922 $ — $ — $ 52,922 December 31, 2016 Description Level 1 Level 2 Level 3 Total Cash Equivalents: Money market mutual funds (1) $ 51,285 $ — $ — $ 51,285 Total assets $ 51,285 $ — $ — $ 51,285 ________________ ( 1) Money market funds are classified as cash equivalents in the Company’s unaudited consolidated balance sheets. As short-term, highly liquid investments readily convertible to known amounts of cash with remaining maturities of three months or less at the time of purchase, the Company’s cash equivalent money market funds have carrying values that approximate fair value.

Marketable Securities

Marketable Securities	6 Months Ended
	Jun. 30, 2017
Investments Debt And Equity Securities [Abstract]
Marketable Securities	5. Marketable Securities Marketable securities consist of corporate bonds, commercial paper, U.S. Treasury and agency bonds and are classified as held-to-maturity. Investments held in marketable securities had contractual maturities of less than 1 month as of December 31, 2016. As of June 30, 2017, the Company did not have any marketable securities. The following presents information about the Company’s marketable securities as of: December 31, 2016 Aggregate cost basis and net carrying amount $ 2,007 Gross unrealized holding gains - Gross unrealized holding losses - Aggregate fair value determined by Level 2 inputs $ 2,007 No investments were in an unrealized loss position as of December 31, 2016.

Revolving Line of Credit

Revolving Line of Credit	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Revolving Line of Credit	6. Revolving Line of Credit As of June 30, 2017 and December 31, 2016, the amount outstanding under the Company’s revolving line of credit was $52,246 and $40,246, respectively. As of June 30, 2017, the additional amount available to borrow, adjusted by the borrowing base limit, was $16,612 and the interest rate was 5.25%. In January 2017, the Company repaid $20,000 of the amount outstanding under its line of credit. In March 2017, the Company borrowed $28,000 under its line of credit for general operating purposes. In the three months ended June 30, 2017, the Company repaid $21,000 of the amount outstanding under its line of credit. In June 2017, the Company borrowed $25,000 for general operating purposes.

Stock-based Compensation

Stock-based Compensation	6 Months Ended
	Jun. 30, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-based Compensation	7. Stock-based Compensation Restricted Stock Units During the six months ended June 30, 2017, the Company granted 308,803 restricted stock units to employees with an aggregate grant date fair value of $8,490. These restricted stock units vest in equal annual installments generally over 4 years from the grant date. The Company amortizes the fair value of the stock subject to the restricted stock units at the time of grant on a straight-line basis over the period of vesting. On March 31, 2017, the Company granted 62,748 restricted stock units and 94,121 performance restricted stock units to officers with an aggregate grant date fair value of $4,384. Vesting of the performance restricted stock units is contingent upon meeting specific sales related growth targets through December 31, 2017. The actual number of shares issued upon vesting of the performance restricted stock units could range from 0% to 100% of the number granted. These awards will vest in equal annual installments for 4 years starting April 1, 2018. Also on March 31, 2017, the Company granted 28,594 performance restricted stock units to officers with an aggregate grant date fair value of $799. The awards were granted in lieu of a portion of the target cash bonus that would otherwise be payable under the Company’s Management Incentive Bonus Program for the calendar year ended 2017. The awards vest upon achievement of specific annual financial targets for 2017. The actual number of shares issued upon vesting could range from 0% to 100% of the number granted. These awards will vest on April 1, 2018. On April 1, 2017, the Company granted 299,493 performance restricted stock units with aggregate grant date fair values of $8,176. The aggregate grant date fair value of the performance restricted stock units assuming target achievement was $5,550. The restricted stock units vest in equal annual installments of over 4 years from the grant date. The number of performance restricted stock units that will vest will be determined upon the achievement of certain financial targets for 2017, and vesting will then occur in equal annual installments over various periods ranging from 1 to 4 years. The actual number of shares issued upon vesting could range between 0% and 100% of the number of awards granted. The weighted average vesting period was 3.1 years as of the grant date.

Stockholders' Deficit

Stockholders' Deficit	6 Months Ended
	Jun. 30, 2017
Equity [Abstract]
Stockholders' Deficit	8. Stockholders’ Deficit Common Stock The holders of common stock are entitled to one vote for each share. The voting, dividend and liquidation rights of the holders of common stock are subject to and qualified by the rights, powers and preferences of the holders of preferred stock. At the 2017 annual meeting of stockholders of the Company, stockholders approved the Benefitfocus, Inc. Amended and Restated 2012 Stock Plan (the “Plan”), which increases the total number of shares of common stock reserved for issuance under the Plan by 2,700,000 shares to 9,244,525 shares and includes other administrative changes. At June 30, 2017, the Company had reserved a total of 5,728,862 of its authorized 50,000,000 shares of common stock for future issuance as follows: Outstanding stock options 314,937 Restricted stock units 1,808,890 Available for future issuance under stock award plans 2,878,187 Available for future issuance under ESPP 146,035 Warrant to purchase common stock 580,813 Total common shares reserved for future issuance 5,728,862

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Income Taxes	9. Income Taxes The Company’s effective federal tax rate for the three and six months ended June 30, 2017 was less than one percent, primarily as a result of estimated tax losses for the fiscal year offset by the increase in the valuation allowance in the net operating loss carryforwards. Current tax expense relates to estimated state income taxes.

Segments and Geographic Informa

Segments and Geographic Information	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Segments and Geographic Information	10. Segments and Geographic Information Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) for purposes of allocating resources and evaluating financial performance. The Company’s CODM, the Chief Executive Officer, reviews financial information presented on a consolidated basis, accompanied by information about operating segments, for purposes of allocating resources and evaluating financial performance. The Company’s reportable segments are based on the type of customer. The Company determined its operating segments to be: Employer, which derives substantially all of its revenue from customers that use the Company’s services for the provision of benefits to their employees, and administrators acting on behalf of employers; and Carrier, which derives substantially all of its revenue from insurance companies that provide coverage at their own risk. Segments are evaluated based on gross profit. The Company does not allocate interest income, interest expense or income tax expense by segment. Accordingly, the Company does not report such information. Additionally, Employer and Carrier segments share the majority of the Company’s assets. Therefore, no segment asset information is reported. Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Revenue from external customers by segment: Employer $ 38,847 $ 36,261 $ 79,477 $ 68,454 Carrier 24,501 21,613 48,042 44,212 Total net revenue from external customers $ 63,348 $ 57,874 $ 127,519 $ 112,666 Depreciation and amortization by segment: Employer $ 2,483 $ 1,975 $ 5,009 $ 3,767 Carrier 1,457 1,292 2,936 2,543 Total depreciation and amortization $ 3,940 $ 3,267 $ 7,945 $ 6,310 Gross profit by segment: Employer $ 16,781 $ 15,269 $ 33,273 $ 27,551 Carrier 17,739 12,855 33,817 26,068 Total gross profit $ 34,520 $ 28,124 $ 67,090 $ 53,619

Related Parties

Related Parties	6 Months Ended
	Jun. 30, 2017
Related Party Transactions [Abstract]
Related Parties	11. Related Parties Related Party Leasing Arrangements The Company leases its office space at its Charleston, South Carolina headquarters campus under the terms of three non-cancellable leases from entities with which two of the Company’s directors, significant stockholders, and executives are affiliated. The Company’s headquarters building lease and an additional building lease are accounted for as build-to-suit leases and recorded as financing obligations in the Consolidated Balance Sheets. The remaining lease, also for office space, is accounted for as a capital lease. The three lease agreements have 15-year terms which end on December 31, 2031. The leases contain options to renew the leases for five additional years. The arrangements provide for 3.0% fixed annual rent increases. Payments under these agreements were $2,355 and $2,286 for the three months ended June 30, 2017 and 2016, respectively, and $5,563 and $5,666 for the six months ended June 30, 2017 and 2016, respectively. Other amounts due to the related parties were $444 and $854 as of June 30, 2017 and December 31, 2016, respectively, Other Related Party Expenses The Company utilizes the services of three companies that are owned and controlled by a Company director, significant stockholder, and executive. The companies provide construction project management services and private air transportation. There were no expenses related to these companies for the three months ended June 30, 2017. Expenses related to these companies were $11 for the three months ended June 30, 2016, and $19 and $37 for the six months ended June 30, 2017 and 2016, respectively. There were no amounts due to these companies as of June 30, 2017 or December 31, 2016. Related Party Revenues Mercer became a related party when the Company sold it over 10% beneficial ownership of the Company’s outstanding common stock in February 2015. Revenue from Mercer was $6,062 and $6,712 for the three months ended June 30, 2017 and 2016, respectively, and $14,569 and $12,258 for the six months ended June 30, 2017 and 2016, respectively, and was reflected in “Revenues,” within the accompanying statements of operations and comprehensive loss. The amounts due from Mercer were $907 and $4,626 as of June 30, 2017 and December 31, 2016, respectively. The amount of deferred revenue associated with Mercer was $5,865 and $7,683 as of June 30, 2017 and December 31, 2016, respectively, and was reflected in the balances of deferred revenue in the consolidated balance sheets. Related Party Revolving Line of Credit In conjunction with an amendment to the Company’s revolving line of credit agreement in October 2016, Goldman Sachs Lending Partners, LLC was added to the lending syndicate. Goldman Sachs Lending Partners, LLC is an affiliate of The Goldman Sachs Group, Inc., as are the Goldman Sachs funds that owned approximately 20.1% of the Company’s outstanding common stock as of June 30, 2017. Goldman Sachs Lending Partners, LLC committed $10,000 to the revolving commitment and participates in amounts borrowed under the credit facility at a rate of approximately 10.5%. Accordingly, amounts due to Goldman Sachs Lending Partners, LLC was approximately $5,486 of the $52,246 outstanding under the revolving line of credit as of June 30, 2017 and $4,226 of the $40,246 outstanding under the revolving line of credit as of December 31, 2016.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2017
Subsequent Events [Abstract]
Subsequent Events	12. Subsequent Events Restricted Stock Units On July 1, 2017, the Company granted 52,724 restricted stock units with an aggregate grant date fair value of $1,840. The restricted stock units generally vest in equal annual installments of over 4 years from the grant date. On August 1, 2017, the Company granted 120,735 restricted stock units with an aggregate grant date fair value of $4,256. The restricted stock units vest in equal annual installments over 4 years from the grant date. The Company also granted 21,470 performance restricted stock units with an aggregate grant date fair value of $757. The aggregate grant date fair value of the performance restricted stock units assuming target achievement was $378. The performance restricted stock units vest in 4 equal annual installments starting April 1, 2018. The number of performance restricted stock units that will vest will be determined upon the achievement of certain sales targets for 2017. The actual number of shares issued upon vesting could range between 0% and 100% of the number of awards granted. Common Stock During July 2017, employees exercised stock options and restricted stock units vested resulting in the issuance of 24,408 shares. Revolving Line of Credit In July 2017, the Company repaid $20,000 under its revolving line of credit.

Summary of Significant Accoun19

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation These consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. We are not the primary beneficiary of, nor do we have a controlling financial interest in, any variable interest entity. Accordingly, we have not consolidated any variable interest entity.
Interim Unaudited Consolidated Financial Information	Interim Unaudited Consolidated Financial Information The accompanying unaudited consolidated financial statements and footnotes have been prepared in accordance with GAAP as contained in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (the “Codification” or “ASC”) for interim financial information, and with Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the interim financial information includes all adjustments of a normal recurring nature necessary for a fair presentation of the results of operations, financial position, changes in stockholders’ equity and cash flows. The results of operations for the
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Such estimates include revenue recognition and the customer relationship period, allowances for doubtful accounts and returns, valuations of deferred income taxes, long-lived assets, warrants, capitalizable software development costs and the related amortization, stock-based compensation, the determination of the useful lives of assets, and the impairment assessment of acquired intangibles and goodwill. Determination of these transactions and account balances are based on the Company’s estimates and judgments. These estimates are based on the Company’s knowledge of current events and actions it may undertake in the future as well as on various other assumptions that it believes to be reasonable. Actual results could differ materially from these estimates.
Revenue and Deferred Revenue	Revenue and Deferred Revenue The Company derives the majority of its revenue from software services fees, which consist primarily of monthly subscription fees paid by customers for access to and usage of the Company’s cloud-based benefits software solutions for a specified contract term. The Company also derives revenue from professional services which primarily include fees related to the integration of customers’ systems with the Company’s platform, which typically includes discovery, configuration, deployment, testing, and training. The Company recognizes revenue when there is persuasive evidence of an arrangement, the service has been provided, the fees to be paid by the customer are fixed and determinable and collectability is reasonably assured. The Company considers delivery of its cloud-based software services has commenced once access to a configured and live instance to its platform has been granted to the customer. The Company’s arrangements generally contain multiple elements comprised of software services and professional services. The Company evaluates each element in an arrangement to determine whether it represents a separate unit of accounting. An element constitutes a separate unit of accounting when the delivered item has standalone value and delivery of the undelivered element is probable and within the Company’s control. When multiple deliverables included in an arrangement are separable into different units of accounting, the arrangement consideration is allocated to the identified units of accounting based on their relative selling price. Multiple deliverable arrangements accounting guidance provides a hierarchy to use when determining the relative selling price for each unit of accounting. Vendor-specific objective evidence (“VSOE”) of selling price, based on the price at which the item is regularly sold by the vendor on a standalone basis, should be used if it exists. If VSOE of selling price is not available, third-party evidence (“TPE”) of selling price is used to establish the selling price if it exists. VSOE and TPE do not currently exist for any of the Company’s deliverables. Accordingly, for arrangements with multiple deliverables that can be separated into different units of accounting, the arrangement consideration is allocated to the separate units of accounting based on the Company’s best estimate of selling price. The amount of arrangement consideration allocated is limited by contingent revenues, if any. The Company has established standalone value for Benefitfocus Marketplace implementation services in the Employer segment. Accordingly, revenues related to implementation services for the Benefitfocus Marketplace solution in the Employer segment are recognized separately from the revenues earned from the Employer software subscription services. Revenues related to such implementation services are recognized at the time that the professional services have been completed. Certain of the Company’s other professional services, including implementation services related to the Carrier segment, are not sold separately from the software services and there is no alternative use for them. As such, the Company has determined that those professional services do not have standalone value. Accordingly, software services and professional services are combined and recognized as a single unit of accounting. The Company generally recognizes software services fees monthly based on the number of employees covered by the relevant benefits plans at contracted rates for a specified period of time, once the criteria for revenue recognition described above have been satisfied. The Company recognizes revenue on Benefitfocus Marketplace implementation services in the Employer segment that have standalone value at the time the services have been completed and the related software services have commenced. The Company defers recognition of revenue for fees from professional services that do not have standalone value and begins recognizing such revenue once the services are delivered and the related software services have commenced, ratably over the longer of the contract term or the estimated expected life of the customer relationship. Costs incurred by the Company in connection with providing such professional services are charged to expense as incurred and are included in “Cost of revenue.”
Concentrations of Credit Risk	Concentrations of Credit Risk The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash equivalents, marketable securities and accounts receivable. All of the Company’s cash and cash equivalents are held at financial institutions that management believes to be of high credit quality. The bank deposits of the Company might, at times, exceed federally insured limits and are generally uninsured and uncollateralized. The Company has not experienced any losses on cash and cash equivalents to date. To manage credit risk related to marketable securities, the Company invests in various types of highly rated corporate bonds, commercial paper, and various U.S. government backed securities with maturities of less than two years. The weighted average maturity of the portfolio of investments must not exceed nine months, per the Company’s investment policy. To manage accounts receivable risk, the Company evaluates the creditworthiness of its customers and maintains an allowance for doubtful accounts. Accounts receivable are unsecured and derived from revenue earned from customers located in the United States. Mercer LLC (“Mercer”), a related party, represented approximately 14% of the total accounts receivable at December 31, 2016. Revenue from Mercer was approximately 10% and 12% of the total revenue for the three months ended June 30, 2017 and 2016, respectively and 11% in each of the six-month periods ended June 30, 2017 and 2016. For more information regarding Mercer revenue, please see Note 11. Accounts receivable from one other customer approximated 13% of the total accounts receivable at December 31, 2016.
Accounts Receivable and Allowance for Doubtful Accounts and Returns	Accounts Receivable and Allowance for Doubtful Accounts and Returns Accounts receivable are stated at realizable value, net of allowances for doubtful accounts and returns. The Company utilizes the allowance method to provide for doubtful accounts based on management’s evaluation of the collectability of amounts due, and other relevant factors. Bad debt expense is recorded in general and administrative expense on the consolidated statements of operations and comprehensive loss. The Company’s estimate is based on historical collection experience and a review of the current status of accounts receivable. Historically, actual write-offs for uncollectible accounts have not significantly differed from the Company’s estimates. The Company removes recorded receivables and the associated allowances when they are deemed permanently uncollectible. However, if bad debts are higher than expected, future write-offs will be greater than the Company’s estimates. The allowance for doubtful accounts was $708 and $691 as of June 30, 2017 and December 31, 2016, respectively. The allowances for returns are accounted for as reductions of revenue and are estimated based on the Company’s periodic assessment of historical experience and trends. The Company considers factors such as the time lag since the initiation of revenue recognition, historical reasons for adjustments, new customer volume, complexity of billing arrangements, timing of software availability, and past due customer billings. The allowance for returns was $3,312 and $3,904 as of June 30, 2017 and December 31, 2016, respectively.
Capitalized Software Development Costs	Capitalized Software Development Costs The Company capitalizes certain costs related to its software developed or obtained for internal use. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. Internal and external costs incurred during the application development stage, including upgrades and enhancements representing modifications that will result in significant additional functionality, are capitalized. Software maintenance and training costs are expensed as incurred. Capitalized costs are recorded as part of property and equipment and are amortized on a straight-line basis to cost of revenue over the software’s estimated useful life, which is three years. The Company evaluates these assets for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. In the three months ended June 30, 2017 and 2016, the Company capitalized software development costs of $1,102 and $1,501, respectively, and amortized capitalized software development costs of $794 and $693, respectively. In the six months ended June 30, 2017 and 2016, the Company capitalized software development costs of $2,329 and $2,985, respectively, and amortized capitalized software development costs of $1,625 and $1,319, respectively. The net book value of capitalized software development costs was $7,139 and $6,435 at June 30, 2017 and December 31, 2016, respectively.
Comprehensive Loss	Comprehensive Loss The Company’s net loss equals comprehensive loss for all periods presented.
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards The Company adopted the guidance in Accounting Standards Update ("ASU") 2016-09, “Compensation - Stock Compensation (Topic 718) - Improvements to Employee Share-Based Payment Accounting,” on January 1, 2017. Under this ASU, entities are permitted to make an accounting policy election to either estimate forfeitures on share-based payment awards, as previously required, or to recognize forfeitures as they occur. The Company has elected to recognize forfeitures as they occur and the impact of that change in accounting policy has been recorded as a $391 cumulative effect adjustment to its accumulated deficit as of January 1, 2017. Additionally, ASU 2016-09 requires that all income tax effects related to settlements of share-based payment awards be reported in earnings as an increase or decrease to income tax expense (benefit), net. Previously, income tax benefits at settlement of an award were reported as an increase (or decrease) to additional paid-in capital to the extent that those benefits were greater than (or less than) the income tax benefits reported in earnings during the award's vesting period. The requirement to report those income tax effects in earnings has been applied on a prospective basis to settlements occurring on or after January 1, 2017 and the impact of applying that guidance was not material to the condensed consolidated financial statements for the three and six months ended June 30, 2017. ASU 2016-09 also requires that all income tax-related cash flows resulting from share-based payments be reported as operating activities in the statement of cash flows. Previously, income tax benefits at settlement of an award were reported as a reduction to operating cash flows and an increase to financing cash flows to the extent that those benefits exceeded the income tax benefits reported in earnings during the award's vesting period. The Company has elected to apply that change in cash flow classification on a prospective basis. However, there is no impact to the statement of cash flows for the three and six months ended June 30, 2017 as the Company did not have any cash flows related to excess tax benefits during that time. The remaining provisions of ASU 2016-09 did not have a material impact on the accompanying consolidated financial statements.
Accounting Standards Not Yet Adopted	Accounting Standards Not Yet Adopted In May 2017, the FASB issued ASU No. 2017-09, “Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting.” The purpose of this ASU is to reduce both the diversity in practice and the cost and complexity when applying Topic 718 to a change to the terms and conditions of share-based payment awards. This guidance is effective for the Company beginning January 1, 2018. Early adoption is permitted. The amendments in this ASU should be applied prospectively to an award modified on or after the adoption date. The Company is currently evaluating the impact of this updated standard on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The purpose of this ASU is to require a financial asset measured at amortized cost basis to be presented at the net amount expected to be collected. Credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses. This ASU is effective for interim and annual reporting periods starting January 1, 2020. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” The amendments in this update require lessees, among other things, to recognize lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under previous authoritative guidance. This update also introduces new disclosure requirements for leasing arrangements. ASU 2016-02 will be effective for the Company beginning January 1, 2019, but early adoption is permitted. The Company is currently evaluating the impact of this update on the consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which amends the revenue recognition requirements in the FASB Accounting Standards Codification. Under the new standard, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration that the entity expects to receive in exchange for those goods and services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The FASB has recently issued several amendments to the standard, including clarification on accounting for licenses of intellectual property and identifying performance obligations. The standard permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective), or retrospectively with the cumulative effect of initially applying this statement recognized at the date of initial application (modified retrospective transition method). The new standard will be effective for the Company beginning January 1, 2018, with an option to early adopt. The Company plans to adopt the standard on the effective date but has not made a determination on the adoption method. The Company is currently assessing the impact of the new standard on its accounting policies, processes, and controls, including system requirements, and has assigned internal resources and engaged third party service providers to assist in its assessment. Based on the Company’s current assessment, areas affected by the Company’s adoption of the revenue recognition standard will be related to the estimation of variable consideration, the accounting for contract modifications, and the allocation of the transaction price to the Company’s multiple performance obligations. In addition, the Company expects an impact from the adoption of the new standard related to the Company’s costs to fulfill certain contracts as well as its costs to obtain contracts with customers, which are both currently expensed as incurred. The Company is also continuing to review the impact of this standard on potential disclosure changes in its consolidated financial statements as well as the transition approach that will be applied. While the Company continues to assess the potential impacts of the new standard, including the areas described above, and anticipates the standard could have a material impact on its consolidated financial statements, the Company does not know or cannot reasonably estimate quantitative information related to the impact of the new standard on the Company’s financial statements at this time.

Net Loss Per Common Share (Tabl

Net Loss Per Common Share (Tables)	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Common Share Equivalent Securities Excluded from Calculation of Weighted-Average Common Shares Outstanding	The following common share equivalent securities have been excluded from the calculation of weighted average common shares outstanding because the effect is anti-dilutive for the periods presented: Three Months Ended June 30, Six Months Ended June 30, Anti-Dilutive Common Share Equivalents 2017 2016 2017 2016 Restricted stock units 1,808,890 1,474,403 1,808,890 1,474,403 Stock options 314,937 1,458,140 314,937 1,458,140 Warrant to purchase common stock 580,813 580,813 580,813 580,813 Employee Stock Purchase Plan 4,204 - 4,204 - Total anti-dilutive common share equivalents 2,708,844 3,513,356 2,708,844 3,513,356
Basic and Diluted Net Loss per Common Share	Basic and diluted net loss per common share is calculated as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Numerator: Net loss $ (4,506 ) $ (11,004 ) $ (12,194 ) $ (24,356 ) Net loss attributable to common stockholders $ (4,506 ) $ (11,004 ) $ (12,194 ) $ (24,356 ) Denominator: Weighted-average common shares outstanding, basic and diluted 31,076,995 29,459,341 30,868,888 29,336,270 Net loss per common share, basic and diluted $ (0.14 ) $ (0.37 ) $ (0.40 ) $ (0.83 )

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Assets and Liabilities Measured at Fair Value on Recurring Basis	The following tables present information about the Company’s assets and liabilities that are measured at fair value on a recurring basis using the above categories, as of the periods presented. June 30, 2017 Description Level 1 Level 2 Level 3 Total Cash Equivalents: Money market mutual funds (1) $ 52,922 $ — $ — $ 52,922 Total assets $ 52,922 $ — $ — $ 52,922 December 31, 2016 Description Level 1 Level 2 Level 3 Total Cash Equivalents: Money market mutual funds (1) $ 51,285 $ — $ — $ 51,285 Total assets $ 51,285 $ — $ — $ 51,285 ________________ ( 1) Money market funds are classified as cash equivalents in the Company’s unaudited consolidated balance sheets. As short-term, highly liquid investments readily convertible to known amounts of cash with remaining maturities of three months or less at the time of purchase, the Company’s cash equivalent money market funds have carrying values that approximate fair value.

Marketable Securities (Tables)

Marketable Securities (Tables)	6 Months Ended
	Jun. 30, 2017
Investments Debt And Equity Securities [Abstract]
Schedule of Marketable Securities	The following presents information about the Company’s marketable securities as of: December 31, 2016 Aggregate cost basis and net carrying amount $ 2,007 Gross unrealized holding gains - Gross unrealized holding losses - Aggregate fair value determined by Level 2 inputs $ 2,007

Stockholders' Deficit (Tables)

Stockholders' Deficit (Tables)	6 Months Ended
	Jun. 30, 2017
Equity [Abstract]
Shares of Common Stock Reserved for Future Issuance	At the 2017 annual meeting of stockholders of the Company, stockholders approved the Benefitfocus, Inc. Amended and Restated 2012 Stock Plan (the “Plan”), which increases the total number of shares of common stock reserved for issuance under the Plan by 2,700,000 shares to 9,244,525 shares and includes other administrative changes. At June 30, 2017, the Company had reserved a total of 5,728,862 of its authorized 50,000,000 shares of common stock for future issuance as follows: Outstanding stock options 314,937 Restricted stock units 1,808,890 Available for future issuance under stock award plans 2,878,187 Available for future issuance under ESPP 146,035 Warrant to purchase common stock 580,813 Total common shares reserved for future issuance 5,728,862

Segments and Geographic Infor24

Segments and Geographic Information (Tables)	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Segments and Geographic Information	Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Revenue from external customers by segment: Employer $ 38,847 $ 36,261 $ 79,477 $ 68,454 Carrier 24,501 21,613 48,042 44,212 Total net revenue from external customers $ 63,348 $ 57,874 $ 127,519 $ 112,666 Depreciation and amortization by segment: Employer $ 2,483 $ 1,975 $ 5,009 $ 3,767 Carrier 1,457 1,292 2,936 2,543 Total depreciation and amortization $ 3,940 $ 3,267 $ 7,945 $ 6,310 Gross profit by segment: Employer $ 16,781 $ 15,269 $ 33,273 $ 27,551 Carrier 17,739 12,855 33,817 26,068 Total gross profit $ 34,520 $ 28,124 $ 67,090 $ 53,619

Summary of Significant Accoun25

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Jan. 01, 2017
Summary of Significant Accounting Policies [Line Items]
Allowance for doubtful accounts	$ 708		$ 708		$ 691
Capitalized software cost gross	1,102	$ 1,501	2,329	$ 2,985
Amortization of capitalized software cost	794	$ 693	1,625	$ 1,319
Capitalized software cost net	7,139		$ 7,139		6,435
Accounting Standards Update ("ASU") 2016-09
Summary of Significant Accounting Policies [Line Items]
Cumulative effect adjustment to accumulated deficit						$ 391
Capitalized Software Development Costs
Summary of Significant Accounting Policies [Line Items]
Useful lives for property and equipment			3 years
Allowance for Returns
Summary of Significant Accounting Policies [Line Items]
Allowance for returns	$ 3,312		$ 3,312		$ 3,904
Customer Concentration Risk | Accounts Receivable | Mercer
Summary of Significant Accounting Policies [Line Items]
Concentration risk, percentage					14.00%
Customer Concentration Risk | Accounts Receivable | Other Customer
Summary of Significant Accounting Policies [Line Items]
Concentration risk, percentage					13.00%
Customer Concentration Risk | Total Revenue | Mercer
Summary of Significant Accounting Policies [Line Items]
Concentration risk, percentage	10.00%	12.00%	11.00%	11.00%
Maximum
Summary of Significant Accounting Policies [Line Items]
Highly rated marketable securities			2 years
Weighted average maturity of portfolio of investments			9 months

Common Share Equivalents Securi

Common Share Equivalents Securities Excluded From Calculation of Weighted Average Common Share Outstanding (Detail) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive common share equivalents	2,708,844	3,513,356	2,708,844	3,513,356
Restricted Stock Units (RSUs)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive common share equivalents	1,808,890	1,474,403	1,808,890	1,474,403
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive common share equivalents	314,937	1,458,140	314,937	1,458,140
Warrant to Purchase Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive common share equivalents	580,813	580,813	580,813	580,813
Employee Stock Purchase Plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive common share equivalents	4,204	0	4,204	0

Basic and Diluted Net Loss per

Basic and Diluted Net Loss per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Numerator:
Net loss	$ (4,506)	$ (11,004)	$ (12,194)	$ (24,356)
Net loss attributable to common stockholders	$ (4,506)	$ (11,004)	$ (12,194)	$ (24,356)
Denominator:
Weighted-average common shares outstanding, basic and diluted	31,076,995	29,459,341	30,868,888	29,336,270
Net loss per common share, basic and diluted	$ (0.14)	$ (0.37)	$ (0.40)	$ (0.83)

Assets and Liabilities Measured

Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands		Jun. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets		$ 52,922	$ 51,285
Money market mutual funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents	[1]	52,922	51,285
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets		52,922	51,285
Level 1 | Money market mutual funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents	[1]	52,922	51,285
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets		0	0
Level 2 | Money market mutual funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents	[1]	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets		0	0
Level 3 | Money market mutual funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents	[1]	$ 0	$ 0
[1]	Money market funds are classified as cash equivalents in the Company’s unaudited consolidated balance sheets. As short-term, highly liquid investments readily convertible to known amounts of cash with remaining maturities of three months or less at the time of purchase, the Company’s cash equivalent money market funds have carrying values that approximate fair value.

Marketable Securities - Additio

Marketable Securities - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2016	Jun. 30, 2017
Gain (Loss) on Investments [Line Items]
Marketable securities		$ 0
Unrealized loss position on investments	$ 0
Maximum
Gain (Loss) on Investments [Line Items]
Held-to-maturity securities, contractual maturity period	1 month

Schedule of Marketable Securiti

Schedule of Marketable Securities (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Investments Debt And Equity Securities [Abstract]
Aggregate cost basis and net carrying amount	$ 0	$ 2,007
Gross unrealized holding gains		0
Gross unrealized holding losses		0
Aggregate fair value determined by Level 2 inputs		$ 2,007

Revolving Line of Credit - Addi

Revolving Line of Credit - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended	6 Months Ended
	Mar. 31, 2017	Jan. 31, 2017	Jun. 30, 2017	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Line Of Credit Facility [Line Items]
Payments on revolving line of credit				$ 41,000	$ 25,000
Proceeds from line of credit borrowing				53,000	$ 34,000
Revolving Line of Credit
Line Of Credit Facility [Line Items]
Amount outstanding under credit facility			$ 52,246	52,246		$ 40,246
Amount available to borrow under line of credit			$ 16,612	$ 16,612
Line of credit, interest rate			5.25%	5.25%
Payments on revolving line of credit		$ 20,000	$ 21,000
Proceeds from line of credit borrowing	$ 28,000			$ 25,000

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands	Apr. 01, 2017	Mar. 31, 2017	Jun. 30, 2017
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted stock units, granted			308,803
Restricted stock units, aggregate grant date fair value			$ 8,490
Stock plan vesting period	4 years		4 years
Restricted stock units, aggregate grant date fair value	$ 8,176
Weighted average vesting period	3 years 1 month 6 days
Restricted Stock Units (RSUs) | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued vesting percentage	0.00%
Restricted Stock Units (RSUs) | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued vesting percentage	100.00%
Restricted Stock Units (RSUs) | Vesting in 4 Years Starting April 1, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted stock units, granted		62,748
Performance Based Restricted Stock Units R S Us
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted stock units, granted	299,493
Restricted stock units, aggregate grant date fair value assuming target achievement	$ 5,550
Minimum vesting period of restricted stock awards	1 year
Maximum vesting period of restricted stock awards	4 years
Performance Based Restricted Stock Units R S Us | Vesting in 4 Years Starting April 1, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted stock units, granted		94,121
Stock plan vesting period		4 years
Awards vesting date		Dec. 31, 2017
Awards vesting start date		Apr. 1, 2018
Performance Based Restricted Stock Units R S Us | Vesting in 4 Years Starting April 1, 2018 | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued vesting percentage		0.00%
Performance Based Restricted Stock Units R S Us | Vesting in 4 Years Starting April 1, 2018 | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued vesting percentage		100.00%
Performance Based Restricted Stock Units R S Us | Vest on April 1, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted stock units, granted		28,594
Restricted stock units, aggregate grant date fair value		$ 799
Awards vesting date		Apr. 1, 2018
Performance Based Restricted Stock Units R S Us | Vest on April 1, 2018 | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued vesting percentage		0.00%
Performance Based Restricted Stock Units R S Us | Vest on April 1, 2018 | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued vesting percentage		100.00%
Restricted Stock Units (RSUs) and Performance Based Restricted Stock Units R S Us | Vesting in 4 Years Starting April 1, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units, aggregate grant date fair value		$ 4,384

Stockholders' Deficit - Additio

Stockholders' Deficit - Additional Information (Detail) - shares	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Schedule Of Stockholders Equity [Line Items]
Common stock, authorized shares reserved for future issuance	5,728,862
Common stock, shares authorized	50,000,000	50,000,000
Amended and Restated 2012 Stock Plan
Schedule Of Stockholders Equity [Line Items]
Common stock, authorized shares reserved for future issuance	9,244,525
Common stock, increase shares reserved for future issuance.	2,700,000

Common Stock for Future Issuanc

Common Stock for Future Issuance (Detail)	Jun. 30, 2017shares
Class Of Stock [Line Items]
Outstanding stock options	314,937
Restricted stock units	1,808,890
Warrant to purchase common stock	580,813
Total common shares reserved for future issuance	5,728,862
Stock Award Plans
Class Of Stock [Line Items]
Common stock available for future issuance	2,878,187
ESPP
Class Of Stock [Line Items]
Common stock available for future issuance	146,035

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail)	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017
Maximum
Income Taxes [Line Items]
Effective federal tax rate	1.00%	1.00%

Segments and Geographic Infor36

Segments and Geographic Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Segment Reporting Information [Line Items]
Net revenue from external customers	$ 63,348	$ 57,874	$ 127,519	$ 112,666
Depreciation and amortization	3,940	3,267	7,945	6,310
Gross profit	34,520	28,124	67,090	53,619
Employer
Segment Reporting Information [Line Items]
Net revenue from external customers	38,847	36,261	79,477	68,454
Depreciation and amortization	2,483	1,975	5,009	3,767
Gross profit	16,781	15,269	33,273	27,551
Carrier
Segment Reporting Information [Line Items]
Net revenue from external customers	24,501	21,613	48,042	44,212
Depreciation and amortization	1,457	1,292	2,936	2,543
Gross profit	$ 17,739	$ 12,855	$ 33,817	$ 26,068

Related Parties - Additional In

Related Parties - Additional Information (Detail)	1 Months Ended	3 Months Ended		6 Months Ended
	Feb. 28, 2015	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)PersonLease_Agreements	Jun. 30, 2016USD ($)	Dec. 31, 2016USD ($)
Related Party Transaction [Line Items]
Lease operating expenses		$ 2,355,000	$ 2,286,000	$ 5,563,000	$ 5,666,000
Due to related party, current		444,000		444,000		$ 854,000
Accounts receivable, related party, net		907,000		907,000		4,626,000
Revolving Line of Credit
Related Party Transaction [Line Items]
Amount outstanding under credit facility		52,246,000		52,246,000		40,246,000
Stockholders and Executives
Related Party Transaction [Line Items]
Due to related party, current		0		0		0
Transportation service from related party		0	11,000	19,000	37,000
Mercer LLC
Related Party Transaction [Line Items]
Revenue from related parties		6,062,000	$ 6,712,000	14,569,000	$ 12,258,000
Accounts receivable, related party, net		907,000		907,000		4,626,000
Deferred revenue		5,865,000		$ 5,865,000		7,683,000
Mercer LLC | Minimum
Related Party Transaction [Line Items]
Percentage of ownership interest sold by parent	10.00%
Goldman Sachs Group, Inc.
Related Party Transaction [Line Items]
Outstanding common stock ownership percentage				20.10%
Goldman Sachs Group, Inc. | Revolving Line of Credit
Related Party Transaction [Line Items]
Revolving commitment amount from related party		10,000,000		$ 10,000,000
Line of credit facility interest rate				10.50%
Amount outstanding under credit facility		52,246,000		$ 52,246,000		40,246,000
Due to related party		$ 5,486,000		$ 5,486,000		$ 4,226,000
Related Party Leasing Arrangements | Non-Cancellable Leases
Related Party Transaction [Line Items]
Number of stockholders and executives affiliated to leasing entity | Person				2
Number of Lease agreements | Lease_Agreements				3
Lease agreement period				15 years
Operating lease renewal option term				5 years
Extended leases, expiration date				Dec. 31, 2031
Percentage of annual rent increase				3.00%

Subsequent Events - Additional

Subsequent Events - Additional Information (Detail) $ in Thousands	Aug. 01, 2017USD ($)Installmentshares	Jul. 01, 2017USD ($)shares	Apr. 01, 2017USD ($)shares	Jul. 31, 2017USD ($)shares	Jan. 31, 2017USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2017USD ($)shares	Jun. 30, 2016USD ($)
Subsequent Event [Line Items]
Payments on revolving line of credit							$ 41,000	$ 25,000
Revolving Line of Credit
Subsequent Event [Line Items]
Payments on revolving line of credit					$ 20,000	$ 21,000
Restricted Stock Units (RSUs)
Subsequent Event [Line Items]
Number of restricted stock units, granted | shares							308,803
Restricted stock units, aggregate grant date fair value							$ 8,490
Stock plan vesting period			4 years				4 years
Restricted Stock Units (RSUs) | Minimum
Subsequent Event [Line Items]
Shares issued vesting percentage			0.00%
Restricted Stock Units (RSUs) | Maximum
Subsequent Event [Line Items]
Shares issued vesting percentage			100.00%
Performance Based Restricted Stock Units R S Us
Subsequent Event [Line Items]
Number of restricted stock units, granted | shares			299,493
Restricted stock units, aggregate grant date fair value assuming target achievement			$ 5,550
Subsequent Event
Subsequent Event [Line Items]
Issuance of common stock upon exercise of stock options and vesting of restricted stock units | shares				24,408
Subsequent Event | Revolving Line of Credit
Subsequent Event [Line Items]
Payments on revolving line of credit				$ 20,000
Subsequent Event | Restricted Stock Units (RSUs)
Subsequent Event [Line Items]
Number of restricted stock units, granted | shares	120,735	52,724
Restricted stock units, aggregate grant date fair value	$ 4,256	$ 1,840
Stock plan vesting period	4 years	4 years
Subsequent Event | Performance Based Restricted Stock Units R S Us
Subsequent Event [Line Items]
Number of restricted stock units, granted | shares	21,470
Restricted stock units, aggregate grant date fair value	$ 757
Number of vesting period installments of restricted stock awards | Installment	4
Restricted stock units, aggregate grant date fair value assuming target achievement	$ 378
Subsequent Event | Performance Based Restricted Stock Units R S Us | Minimum
Subsequent Event [Line Items]
Shares issued vesting percentage	0.00%
Subsequent Event | Performance Based Restricted Stock Units R S Us | Maximum
Subsequent Event [Line Items]
Shares issued vesting percentage	100.00%