CSLT - Earnings call transcript Q3 2018

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Operator

Good afternoon. My name is Kim and I will be your conference operator today. At this time, I would like to welcome everyone to the Castlight Health Q3 2018 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. you. Thank of may Head your Relations, Investor Fuges, begin you conference. Gary

Gary J. Fuges

Health and XXXX welcome afternoon third to Good Castlight quarter conference call.

Joining John Doyle, the call Nolan call remarks, and today Officer; their to will will the Officer. Siobhan open we Siobhan Financial Mangini, me and Chief take prepared and offer up then, Chief on Executive John are your questions.

forward-looking and or forward-looking for performance those strategies and PowerPoint differ of included of channel to were our our this the direct press from we our updates to forward-looking sales our subject the or non-GAAP the our contained future this call the November factors with is call a longer or a current and that call cash in company's X, efforts, contains so any refer Please on additional November the factors we Commission actual in materially will in and accurate. do ability non-renewals, may position. after savings momentum, risks, the but channel unless call on cause and statements. further including important presentation and are any website. our update obligation or impact and flow We performance If any cost trends, These X, at may information public anticipated available and webcast to statements and be are made forum. release, guidance revise expectations in guidance discussion Exchange We provide our our press events disclaim add various that on Securities no full views release statements of the November uncertainties XXXX, X, reflect statements. Our results business, to XXXX, the churn year and the time management's risk guidance company's regarding quarter, provide timing not during XXXX as of and breakeven, filings This to for cash XXXX operating risk partners, of of replayed future assumptions.

A reconciliation Our income to believe be basis gross margin, presentation the that, on net our share, operating as also our operating that per earnings or Appendix income such in expenses, filed of GAAP the John call in loss, comparable to CEO. net diluted Castlight's over financial metrics before and metrics the a Doyle, John? can historical loss section understanding found I'll we non-GAAP call. includes release operating aid the With turn results. of non-GAAP certain

John C. Doyle

themselves. but the far, call the Thank news we high by you string more the because one the then, was Walmart QX. you the And a lot speak Seasonally joining beyond a important for third well. the our set faced to only The key biggest consistent today first quarter tested us. yet, positive for since churn a of to pleased highlights The stage us we've especially ahead. of of loss during churn was drivers that on half performance with challenge as for factor successes not was again today. of am moved of I share it

the they navigation have business virtually which large The regardless significance very to comprehensive incentives businesses executed customers, party which solution our market organization Complete thousands ecosystem the work most we and with the of the for any serve complex employees, launch Complete for of large of with We foundation multiple was high now year is payer Castlight First, in of set because outstanding. exceptionally launches first top the programs. and United these This hundreds health third our goal of of the in the launched team our included was multinational with. integrations well. States

is of first launches product the the season view opportunity heading Complete, XXXX. good we as closed well-executed to in quarter. the with clearly season, in sales a quarterly Anthem financial record reached since next Momentum revenue improved QX, date, its point in From overall of time. of Castlight our has reaccelerate to have a traction new selling an Engage to last With addition we selling most partnership a our well. into logos positive the million number we sales powerful excellent in of In launched in $XX January. product for first

Castlight's an necessary in any gross is led that to a the in sequential operating scenario. strong margins restructuring non-GAAP history. in a executed also important increase profitability milestone We Reaching non-GAAP profit and first

it satisfying Castlight, over innovation it is and the same market-leading sustaining also while especially period. growth did For because team the revenue

be margin that to to target can We XX%. confident reach operating our XX% of Castlight continue

Finally, progress in potential excellent we channel call. discussions since with made last partners new our

healthcare. of strong digital important seen part new There create compelling ways have clear from as We users employers of opportunities. health key see and that firms value interest these in through of solving diverse a are for group a one to issues navigation partnership

be As for intended is a previously, to initiative us we've in driver this XXXX. sales not discussed

is in We in churn ARR we period QX. a periods, with day ensued potential This the and our in last financial business support other employees. instability for is historical mainly well dissatisfaction both seasonally of alignment We legacy up firms That not elevated the capable We words, created to saw when In problems has legacy among only that Jiff became growth headwind ended this will with ARR the was plan new quarter. In from the was to and The our of that quarter exasperated across even With decided in Jiff continue significant lost a them in partnership QX day and products of than end, concentrated also Walmart their with ARR Complete X% ARR. with our and of go-to-market flat Therefore, than net difficult migrations to proceed our a year-over-year. products, progress during customers impact the Walmart to excluded XXXX. of in from of more dynamic to said, the to rather tone million other long-term strategic challenge was engaged the expected replatformed due well great than committing our business and $XXX stronger clearly for them deliberately summer. business. in their we because in to our while product, prioritizing quarter-over-quarter legacy as QX. we fully terminate the all just customers solution QX us transparency, strong migration. notably, had this Wellbeing, wellbeing all for of rebounded strategic our initiatives,

near-term to is it next Castlight valuable essential, Star. which that is North most all deliver a highest from quality, financial point in This the industry we regrettable our are long term, year sunset planned. view, of user simply experience the if consistently While as over is imperative products legacy the

remains fact than has persistent that the for us However, churn headwind more for a been two years.

believe risk the Castlight. So, on to at four reasons. see that churn we've turned explain I We want we corner why

that customer renewal behind we about that the renewal did. XX% before have that this ARR year, no half First, individual the up is even and ARR to talk less we'll the XXXX Walmart represent even us, compared the in for reasons worst is reality substantive churn

way, that this getting a year. just in it's next fact start easier renewal us comps So for

been churn fact before. total past customer been than of it the This that XX% just we market segment, due relative highest through QX Transparency of expected, churn is ARR, profile risk at consistent is overall the sold worked above renewal pricing as at the QX. pricing. with that amount lower which has significantly to lower have our to our portfolio periods. was was end the prices large minimal was business in Also, have current of ARR customer our Second, of we

next issues Third, that elevated also is this XX% At and for interactions. the legacy date in have active program Care significant driving app The metrics are Fourth, within combination Xx specific year. single to our clinical the Guidance with feedback migration delivery The the Engagement Jiff a Jiff migrate products. app implemented created customers associated users, us. Xx and searches users churn of risk key the a across customers legacy engagement launched that love committed remaining excellent. point, that like behind product products Wellbeing and largely product. by and higher instability user to of platform newest of our is service monthly

delivering are in closed is and the the NPS as Castlight a in gaps loudly rate, churn market. speaks addition, to of being confident well. the that are us. care it higher which reasons User is at These change. products the increasingly health navigation best behind In XX north say headwind too, scores are we meaningfully reviews behavior digital consistently

delivering already everyone delighting scalable the a of book our corner legacy higher. all is a soon Castlight soon. completely is products the customers users The driven that on us that real by is exposure bulk issues we'll migration-related and through to at lower. of told, renewal We is overall for platform risk Our on be single All of will have work value business and energized behind be quality customers. very tough turning

of business. growth We to been second time half opportunity for have The the as focused for on XXXX pivotal is hand. reaccelerate our at moment a a long

available in compared things to the With offer, States. range capabilities for to XXXX this as in will that communications, be the care navigation the means wellbeing United business full two organizations QX, large of for guidance formal health differences Castlight in generally from to now we that year. Complete our This launch of all important are

this last was available Engage time First, for Complete Castlight delivery. Anthem at nor year, neither

products. next will second, the any in and sale, some year innovation competitors. financial and Complete, relative consequential automated Like factors improvements deliver architecture solution the point implementation last decision These ours free And Most profile industry. year to and sunsetting partners are continued infrastructure, work of services love. come commitment strategic assurance following demo health that view, our our apart R&D users' our industries, organization from XX the in large Castlight has for navigation months required responses and up available a professional launch health set but with emerging the product team sales navigation quality improvement many unglamorous our our the of products significant comprehensive into will users successful the data position to time. of difference with capacity and go over products importantly, our production to The country. heavy to and direct in Now, legacy in channel resources has prioritized all evident sales for our pain, integrations in often a for our in complex is scalable above to investments

of three all ever dimensions. be on to health Overall, product and success, and history deliver Castlight. operational the restructuring company's leading was completion the execution, in with and product for our evolves, Castlight aligns the best key of us that for enough determinants will important most scalability business quality, QX navigation a quarter As reliability is profitability. the committed our growth to soon the XXXX of delivery and all flawless at nearly program come can't of market

We growing leader in who in will performance I'm the place where review health have the and for our I'll Siobhan over detail. model go-to-market in product, and right for turn we're excited the future about financial now to greater success, as updated and headed outlook navigation. strategy the market digital call QX

Siobhan Nolan Mangini

launch in executed from QX, recurring impact with $XXX.X ahead Thanks, million. profitability and restructuring me afternoon, of the XXXX we'll results all of metrics I'll us generating your After ARR achieving activity non-GAAP QX that We Note solid and outlook. everyone, you John. exclude quarter joining Good non-GAAP ended of for our well target. revenue the revenue August call. annualized net of that, thank quarter or and operating QX review on XXXX We questions. also take one our today's let program.

services adjusting Based received forward. we John retention Walmart having believe quarter laid year-over-year. flat reinforce scalable from increased launching we customer on third customers, $XX XX% successful to either position total revenue As was notice in services earlier function revenue increased QX beyond. of was growth implementation in revenue year-over-year. XX% Subscription X% renewal, platform, ARR July. was mentioned, essentially or up increased and to of John subscription both year-over-year. and XXXX termination of like and our professional Revenues in for migrating drove I'd a groundwork fewer million, Total what Professional the customers QX, our our reduce said customers activity to the are with in and churn for revenue XX% revenue. about our have the on which launched going coupled for

onetime product. As we we development forward, discussed, we previously associated have local Anthem fees with as look of will the professional lower the services

QX ago. in reduction was third a and quarter. the restructuring the across XX% in our compared costs non-GAAP gross to our year saw business margin a we result to XX%, Overall, our turn let's third Now, financials. quarter in every a of non-GAAP quarter area as XX% successful prior of

progress drive key pleased areas savings the yet cost We such across this Services targeted are Web very quarter. with Amazon we as to and made past durable

our discipline to revenue XX% quarter year-over-year, with operating We hit XX% in half to This to reflects program, our third year. the growth X% day marketing day and compared our continued expect Total line, were period. of to in the long-term gross continue of of specifically of an million, down to the margins operating the the in expenses for in combined $XX.X non-GAAP second expense impact restructuring operations. sales XX%

$XXX,XXX of long-term approximately program. was targets. the in future was from a our This majority improvement revenue ago we reductions equivalents million cash, non-GAAP result period. $X the continue to ended which employee of million in compared restructuring the and approximately $X.X QX, used with expense We at to income a our to from program. levels an and of in Cash growth operating R&D operating $XX.X invest is cash restructuring growth, in severance innovation marketable of operations above the loss included QX of year million the securities. of importance the Given quarter

million to at $XXX of let basis of We to on on QX a me With flow million our outlook. customer $XXX to end We remain timing range, our expect from to XXXX an guidance that, track update continue based operations now breakeven high be in launches. provide primarily be on revenue the the to cash QX.

to five-quarter the range a the over range four months. seen to we've is from With building in quarter forward. closer the the an anticipate revenue X-plus made going now we progress XX scalable platform, improvement to past to This ARR conversion we've be

expect of to result non-GAAP now million. our restructuring guidance loss beat the $XX range a $XX As to program, of we operating million

million operations will prior a operational our anticipate product target financial quarter of with We $XX range the of now our in cash. summary, end mid-$XX In decreasing of cash year expect performance. offering the strong of was also and million book We and execution transformed used business. beat risk QX while than our of to more profile

just We take for our employees be on your at in powerful digital are offering Operator, beginning date our of delivering excited we market shareholders. the promise to most the questions. with users, to and believe now of health and are we'll customers,

Operator

Your from first from question Jeff Garro comes Blair. William

is line Your open.

Jeff R. Garro

want afternoon. and dynamics a Yeah. about ARR Good Thanks for taking the the follow-up I the to the quarter also in questions. little reduction, restructuring. in the factor bit workforce

less You guys now. people have

real complex the and of than for You've health environment, growing count. ever. And some more customer benefits seen digital the healthcare workers, it's positive

to future can as and you able retention improve look So bigger the up and be more things and scale more environments, us handle complex in as more you forward the business complicated? how help get you'll and

John C. Doyle

question. leaders, your premise particular, a things healthcare ever more complicated address that proliferation to in certainly for costs. potential benefits are HR getting ways to heads Thanks employers those is agree this struggle John. with of increasing and deal for costs, as really, So Well, of the and Jeff, with

hundreds healthcare high all a If think navigation you and Castlight other forward concentrated means medical, a areas about about our fit, then, fronts, in on And whether gives is as care It's quality, of opposed healthcare To it's ourselves a data users is sources from programs confidence need depth pharmacy, breadth, behavior and reasons employee efficient standpoint healthcare category one perfect in, going technology which, ways. a that breadth, clinical both whether as a highly you elaborate for this in ingesting little guidance, are right, side, getting think entire what whether the personalized resources, base. sites covers of it's what business, and of to complex Castlight the you've on cover changing might about basis the experiences wellbeing about navigation, that individual is requires to for because it's services we're on monthly or on navigation got it's talked about. both depth, scope. their bit, In thousands more as also, products of in care, all an from to That's wellbeing, requires which other a more the to in us well-positioned. deliver really care consumers that think environment, We have example. and and for customer about that positive We main files by of to are retention. we're the of what what do. all the gaps well-executed words, of just is is cost

I the that And of piece think there churn. important reducing most is made so, the progress we've

through we renewals kind not just the the renewal have with the next happening certainly into mentioned that and of other that a frankly, are Some the of year in renewals of math the areas than Wellbeing And that class. us same legacy many on previously, pricing script, the significantly smaller exposure just customers are the dynamic also that churn part that us of those boring headwind we don't all renewed is legacy substantive, heading in favoring we but migration much And we have conversations said business before. was customers we now And the and then, products. a a XX% before. then, lower of had of been high business, for have the transparency, been with

of – date committed we to migration as churned, talked either they've a XXXX. in So forward committed or heading them about, XX%

into to going improve we're the of quite numbers like those a all great for reasons that are heading bit feeling XXXX. retention So, –

Siobhan Nolan Mangini

the asked? had I question also about hear you restructuring did a Jeff, that

Jeff R. Garro

customers, trying there's in aspect people. complexity essentially have healthcare just less hit – and of more to the you was that more I

make kind I have So, want that the capacity issues won't and cracks? customer of service falling to sure there you the through be

Siobhan Nolan Mangini

question. It's Yeah. a great

in particular, like executed we that I on I the and be on innovation when was support. areas we customer able growth, to adjustments very we self-fund restructuring to excellent subscription very and experience customer goal focused that success are focused think Amazon quickly. successfully, very see The they ongoing you Web sure really think was The trying we as did, customer that. Services margins making and and be did really increasing made, around to

terms In were we're in structure area. marketing the Engage made more ability adjustments a in The cost look of to were biggest using OpEx and to every as but both the the side, have we channels like also team the direct and really infrastructure that's there sales from adjustments the leverage seeing sales as channel, forward. blended

Jeff R. Garro

one more could hope and and on maybe shed and pipeline of contribution, follow-up Maybe kind the own the of Thanks. on gross more the discuss about that. ROI feelings some force, your and me, for light guarantee mix maybe also side ARR between on you the Great. Engage sales impact your the the

John C. Doyle

Jeff. Thanks,

of with We exciting, obviously, that Complete. in pleased profitability, on about priorities. overall, the we're of new we've time, logos quarter all, and focused a team's been about Castlight quarter across milestone launch outstanding the talked really some too. execution So for critical that's talked We so the number first record of

QX, still the Complete something new also part it that the customers QX. was sales that in contribute Castlight and of was according momentum to good QX through. the really and us a that QX That than partnership we to is the that the were launch potential new it's launched in product maker the about a of pleased reception initial users business very the terrific. customers production, it, business the bit QX with gives heading not to I already and plan. in XXXX. just and see where kick that place forward The we in going contribution did the in well Engage who've dialogues saw significant talk did volumes into difference of expectation. to ability customers. test is talked and continued in the really, is in come But going by of of That and to terms In perform saw the prospects we tires, more at folks We now solution these of think referenceability product in

that headed where about is excited we're year. product next so, And

Jeff R. Garro

taking for the Thanks Great. questions.

John C. Doyle

Thanks, Jeff.

Operator

Peterson Your question from James. Raymond from next comes Brian

line is Your open.

Brian Peterson

the so congratulations my been multi-year taking I question. available. for Thanks you, echo a to And getting guys, that's I effort that Hi. for on just want Complete. congrats generally for know

as we about... think So

John C. Doyle

Thanks, Brian.

Brian Peterson

I'm Thanks, market John. third about profile change Any more think active. just I little if sell And XXXX, and a about with maybe the second as just bookings of typically, overall? you the with Jiff that guys that how does are know quarter going to I could we that functionality, didn't think the seasonality the of the quarter to throughout Complete curious year. more you something that? some know with that's the help in

John C. Doyle

standalone question, at Wellbeing an our and really with of certainly, important is door Wellbeing the Brian, the large any and time we offering Great any of component conversations sell for do organization opener year.

annual cycles. it's think think wellbeing truth about I teams benefits that most the and still

And major so, expect seasonality. the change I don't in a

point a of than cycles past a active an there's one your for closing and we've sales and is I Wellbeing periods of think that of kind the Although, seen opportunity dynamic. dialogue because in other perhaps in more good

Brian Peterson

don't who out the going but thought, be correctly, know guys you transparency-only have follow-up, to this, a I heard if I Siobhan, you is ARR. everyone John in over. to XXXX, take wants of or that split I Maybe kind migrated

we disclosure everybody is no won't the that Just So, get, same make and I is a that that right. to longer have on want relevant platform? is sure that essentially,

Siobhan Nolan Mangini

It's Yeah. great question. a

we're on of ARR transparency-only. So, at XX%

modular, It's What transparency, dropped Wellbeing as end you has last Complete. single saying, are platform John we that quarter. XX% everyone was on Care Guidance down it saying have, is could or so up our will technology. So,

transparency-only. percentage with to are and will had We But this always there XX the over We past transparency moved some quarter. customers another small are of said, platform on actively migrating be, still as folks customers that over. we've

we'll a continue to point, exceeded But of share portfolio overall that this and part at the Our target minimal We've it's mix. was XX%. already that.

John C. Doyle

products, the stack. Siobhan's the importantly, of think technology Brian, I all being point, are delivered same to off

talk going what now forward, analytics targeted So in about of talk transparency, kind about would as past been you profiling customers engagement. and with the as context have product, in of Action it user not and the that deployed, the we we will Complete familiar which Castlight have be our as

that's So, the that's customers transparency. are not piece that for there using just

Brian Peterson

Got clear. Thanks, it. That's guys.

John C. Doyle

you. Thank

Operator

question Your next from & from comes Cowen Rhyee Charles Company.

line is open. Your

Samantha Warman

This you loss terminate, guys. of decide maybe Jiff why a gives platform you Hi, today. made I maybe for thinking guess talk Sam didn't about last on don't make them legacy just recall of is I terminating. forward? confidence have question. they through that the I what were what to Charles some to maybe quarter onto hearing kind the Thanks. move Can moving and that up clients new

John C. Doyle

Until customers of understand forecast. Last our stage when migrating time just Jiff was the to between recently, Thanks, of with time some not wouldn't acquisition on fact migrate we about when in used clearly customer been with that receiving were in was that the of I just the that have Jiff legacy not product something or function employees acquired progress the direct occurred. just subscale for of way, call as incentives is referenceable. which instability was about to great objectives, difficult of the early is that in the we on wouldn't and to many a made I of unacceptably we the to platform, we re-platform, in creates most now not stretched acquisition, demonstrate able had see Sam. into do that of the instability thought as how easily some need with is What that on the incentives Castlight against teams. that a to you driving term think, very business it in a achievement script, that the wellbeing for were to And we of that solution exasperated, significant platform production, they XXXX. think having able I timely I cases, the Complete, have these conversations a rebuild the example, the disruption phone consequence decision that of HR deal market-leading talked I that think certainly poor is to in the try significant think why What we say, Complete calls capabilities we a of the should reason a support, experiences, Wellbeing stress Castlight to which, and caused

a spent But And when in of get you even where diving the ton with feasible. imagine yet, that support frustrated. talking migrating are so, pretty customers who time those customers we just you're can a a in about you circumstances, market hasn't to at And point difficult product in, very it's providing conversation. that been

we reliable, vastly easier ample the that that XXs, much a we've past and more is and Complete a that's next means cases, build particular, And cases will to navigate Castlight some in but able for that platform conversation those all forward the launches the so, robust that talked think we're year year confidence be heading didn't, And I'm with and in we pleased migrating, around about. what situations, larger with bottom I that in as line support, and just different in and to not XXs much with fundamentally place utilization, customer there. in the from got We've only a many that so, we and some of hundreds next is of customers evidence levels user products, were look employees business higher active and fact the the relative We launch NPSs we're support. seen thousands a the for need at lower perspective but value come out this we've year. it's and what to to of just support can of that

and So, the the critical are of of the platform strength really go-forward all completion pieces. the those conversations

Samantha Warman

on Thanks. that. in their Anthem they've the it first that the And of sounds call, earnings most had XXX,XXX just about I recent already they quarter, Awesome. Engage, the according outlined had Anthem kind follow-up to And on guess, like doubled one I think members platform.

I how more – Thanks. to opportunity you it of So, but can room know you more talked there the on you bit little and on elaborate a kind maybe little guys have. much bit briefly about a run

John C. Doyle

Sure.

the expectation in on business So, we're to double plan. on be talked would plan and double before pleased approximately with that of Anthem we've XXXX. volume would that we about an in we We're there we XXXX did it

Castlight belief momentum successful and that is the every first that that, applicability of relationship folks, we room together, as to what business a that great. to large Having organization excited think there represents, which post-GA. Complete season sets that that of about country, well full absolutely a lot significant in I a we're us up said a product in the year we particularly opportunity is for have us selling which launch most the and hit XXXX the gives its grow non-Anthem customers, our next is really in and the

So Complete. very Castlight on focused excited about that potential,

Samantha Warman

guys, Awesome. the on congrats Thanks, quarter. and

John C. Doyle

Thanks Sam. a lot,

Operator

Your next (sic) Frank Sparacino question [Analysis] Analyst from Investment. First comes from

line is Your open.

Frank Sparacino

business maybe Hello, terms with, on just and parse churn, in of everyone. you, the start Siobhan, ARR quarter, maybe the for added? can then, to the out this new you details just

Siobhan Nolan Mangini

Sure.

me with the start maybe Let new piece. business

penetrating is strong we've about, really very early the talking Engage. been John's traction It So with majority. seen

seen highest philosophy So, we the in saw ever the we've logo business.

average note thing important into. direct on sales an are than selling XXXX our Fortune see versus smaller is to what deals you is think that the those I team that

our half you book per customer, our And of business. QX of ARR across Engage that look average, on deals average were, about when so,

level And adoption. see we're the so, to excited of

of of been creates is across of different we've that our but is book, which something talking diversity the about more think base, terms growth. it customer in terms in diversification I it

we've headwind, then, the of the application it $XX elevated the from joint level terms an Wellbeing who that In and in dollar from folks we ever churn about what had came saw, terms the seen. was alone basis Walmart churn absolute other million-plus Wellbeing legacy also termination highest or came on customers. at customers the or we're talking of legacy majority of

growth, excluding which we're Walmart. And elevated but yielding QX that two so, flat a in very as pieces, us XX%-plus behind those churn was, we driver, committed migrations, we the is have ARR can think imagine, now that the headwind, is you that on

Frank Sparacino

in the versus commentary one direct, any maybe for And the channel follow-up there? just terms of contribution me, from

John C. Doyle

contributions of said, the sales, the I that's the Well, are I really, function our where as channel, relatively launch Castlight from a business relative perspective, from Complete. so of think and in QX, from less in the to QX, – we big direct

And quite legacy that's should our given with team churn we've drivers tested in Castlight So hadn't of sales one a capability. sales confidence launch product launched in can for to launch give difficult I in really literally important we that and product issues production were that Complete overcome think I was was now this of just of demoed in to the that be of new prospects about have the cycles referenceable, a for that – transparency, just yet. talked production, that selling about the in QX, the it's some Wellbeing, XXXX say, fact to time been

going the their nowhere to stability experience referenceability. you're you're the dealing some issues employees product, and on to who have reassurance some are about new have in with the legacy when So go want you prospects to talking

All changes good we're a about first heading feeling Complete which Castlight XXXX, of that full part of the is of big year reason post-GA. sales the into that of

Frank Sparacino

you. Thank

John C. Doyle

Frank. Thanks,

Operator

next Your question from from Mannheimer Dougherty. comes Gene

Your line open. is

Eugene Mannheimer

on good and quarter. Thanks a congrats

John C. Doyle

Gene. Thanks,

Eugene Mannheimer

of couple Just questions. housekeeping a

clear, the does to take Walmart subscription of effect want Just January QX revenue does or that impact X? departure

Siobhan Nolan Mangini

churn the a end, No, the – majority the effect does think out tend I Gene. end year, subscription it's XX/XX. metric. on leading but as soon as our as at of to been essentially basis, tends it takes the question, ARR take of year Great We notified, – it of revenue as aggregate at

Eugene Mannheimer

Okay. versus quarter, ago it was respect transparency the now? – can how did year give churn, then Great. with to us the And number you you for Good.

Siobhan Nolan Mangini

may with I you. need can. follow-up to I

I I it in the was if XX% correctly... – remember think

John C. Doyle

XX%. Yeah.

Siobhan Nolan Mangini

...XX% range a year ago.

Eugene Mannheimer

Yeah. a That bell. rings

so, And we that churn the the bulk given look to transparency XXXX? your what might like exiting churn behind confidence is you, expect of

Siobhan Nolan Mangini

happy point, to touched John I'll start have all At talk. essentially have this actually and transparency we customers.

with XXXX. much Genius, transparency on platform of end satisfied marker important are and you is better were think year, reason in would would transparency, at where about that platform, we are if being that plans to which we we to on the it, a think that is churn year called product. really always the platform we in run I were why stable It but customers, We'll the obviously about everything, touched of the those just this we're think it's at the so, headwind end now us. think And to according this behind want knew from talking all more was pretty of product, an have different we that point, We say did forecasted, And something the than a but by legacy expected, was we launched the terms Action, it's had the your headwind be It to I position. year. place a that point, than to folks move we this XX% ago. the I much

John C. Doyle

through market that priced in to says Gene, transparency customers and And when decided deals current just they decided at the touched Agreed. to these – largely renewal means stay those have affirmatively clarify, customers, pricing. transparency, we Siobhan cycle which remaining been to are stay all with

Siobhan Nolan Mangini

Yes.

John C. Doyle

feel about So, we very good that.

Eugene Mannheimer

Okay. to respect number new logos, majority the Good. net you number of Engage-related. them encouraging. the And logos? Did of were with give new indicated the of you Very

Siobhan Nolan Mangini

we've count, I And been we the something, notified or churn. it we've sell logos a until soon as rationale created were as but as are, back adjust asking aren't just be was little about – not. Walmart. we customer the equal, all you end in logos it's that's to where not removed we take did to XXX-plus contracted folks provide is probably the We'd and contract get We using to as why there, saying, and to try been as ARR out just given

the will, end be that's So, at in of adjusted. that the included year, it and

XXX expect And of at be year. the this to so, end we around customers

Eugene Mannheimer

it. Great. Thank Appreciate again. All you, right.

John C. Doyle

Gene. you, Thank

Operator

There are no John further questions at call CEO. this back to time. turn I now Doyle, the

John C. Doyle

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Operator

today's concludes conference call. This

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Castlight Health (CSLT) 6 Nov 182018 Q3 Earnings call transcript