BNFT - Earnings call transcript Q2 2018

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Operator

Greetings, and welcome to the Benefitfocus Second Quarter 2018 Earnings Conference Call. [Operator Instructions].

As a reminder, this conference is being recorded. I'd now like to turn the conference over to Michael Bauer, Senior Director of Finance and Investor Relations. Please go ahead.

Michael Bauer

Operator. you, Thank welcome and Second XXXX Quarter Good to Call. Earnings afternoon, Benefitfocus'

results discussing close our be will announced of the today. the We after operating in issued press market release

Executive Ray Officer. a Financial and Q&A up we Jonathon prepared President today will our some Ray August, offer session. and me Jonathon Dassault, are and Joining for Chief remarks Officer; will open and Chief call our then the

subject quarter statements and remind you year that discussion management growth, our are such could GAAP Before to need as other uncertainties, begin, and forward-looking and results, recruitment cause of variety losses of third expectations. cybersecurity considered forward-looking and environment market, of to materially information and let subsequent me guidance of financial actual laws. a a under from stage achieve we and continuing our risk representing federal views views any our changing to differ should that today our that of risks full regulatory as reflect be retention including the personnel, will XXXX only today's be statements early expectations not and security date. of and as include our predictions, statements profitability, results fluctuation of These the might considered These key

and results, discussion filings. the SEC actual our further refer please factors Form other our material of affect to XX-Q a report that For risk and could important quarterly on

During certain we the non-GAAP financial also of course today's call, measures. will to refer

Ray. now about in I'll press over measures our to those the You important turn disclosures can find release. call

Raymond August

quarter. another afternoon, Good had Mike. Thanks, Benefitfocus solid everyone.

the a QX driving profitability XXXX for We're with end the pleased future shareholder profitability revenue in half to our our of the business pleased We make continue progress we're factors. We exceeded key BenefitsPlace. We value. recurring exceeded generating guidance. faster for revenue our We're long-term of and results. first a several The result with of of top top well growth, performance, is our our guidance. improving and with bookings positioned on our improvement end

and both user, First investments ARPU. teams. and reinvigorated lives strategic adding is our our This focus average and on sales and direct shift or have our indirect revenue in marketing increasing sales per

Because Second, efficiency and platform for in in ability value our our the indication announcing third, customers XXXX. of value data Since are our strong ecosystem. first that March, solid our investments our remain We stakeholders we recurring driving our show the supplier higher revenue platform. a demand operational we increasing accelerate partners. and continues increasing are and to the strong and to adding revenue BenefitsPlace half QX adoption, is for broker XXXX accelerated our in in market of carrier, have results, confident midpoint in to all guidance. And XXXX growth the

is execution, and revenue momentum strengthening focused We our opportunities Our strong. expanding remain on improving core. sales

increasing the drove direct during and Let's first enhanced lives expansion. in review are half the performance on XXXX. sales contributing in and platform number these We quarter our bookings made of and and indirect teams, of progress to ARPU investments steady Beginning sales operational further execution. alignment with our our priorities. QX internally both on the This

with enterprise on lives are SAP by our on by sales accounts; increasing new channel Our and and sales number and the focused Mercer teams direct adding focusing with brokers; by of on strategic targeting relationships. the partnerships platform channel

a Premier we of launched every market in our gained another in influential on Our us actively QX. partner sales in new QX program broker community to the further quarter, with platform. growth and our major almost channel. sales In Broker we can as and solutions signed the closely provide channel QX, broker Premier now to country. These ended and our partnerships consumers efficient strong SAP engage more posted momentum brokers and drive

lives efficient our Both market-leading seeing community to Since are their have clients. increased In more we up need With a have represents period. XX our increase we from XX, increase quarter, the recognize pivots greater platform better strategy. in added brokerage large a model the our in our been the strategic large the distribution driven sales to meaningful expansion help from number Investing serve employer in sales And of prior-year demonstrate model. ARPU strong and opportunity, from in sales up Benefitfocus to our XX%. used our count employer-focused sales transition to prior-year customers, provide embracing logo in XX our year-over-year period. has employer evolution in XXXX, of community second carrier a IPO our count carrier-focused broader an the a business. current the transparency on solutions into platform. we customer channel to demand indirect huge This -- to and XX for business our We our partner

platform lives platform of drive direct in our ARPU, As the transactions our key revising strategy external and increase expands on additional on as to and our we our BenefitsPlace larger process resources focus metrics. with are sales we

we For with We will In provide platform. and new on our introduce reporting, this the the count plan business to with the associated we lives remainder logo model, believe measure metrics our We carrier to stop count business. meaningful in evaluate employer XXXX, believe measurement. into logos to a we insight our and conjunction as a continue increase as our providing will plan to less large of will XXXX. XXXX metric a logo be

By We carriers suppliers, Benefits. we opportunities. a And in revenue customer expand BenefitsPlace revenue expanding consumer We've with of to options growth existing progress choice, recognition ARPU. priority, provide made a consumers provide Sellers to every experienced consumers made ecosystem. BenefitsPlace phase better partnering Both opportunities and consumer and protect their experience. to adding that protection have the transaction health, their better the lifestyle, value launching and strong suppliers brokers want through enrollment, value, ecosystem, experience increasing mind. consumer receives these the broker, better carriers for factors launched carriers on from BenefitsPlace. and and for platform the second the employer employers enabling increase generate repeatable and our benefits generate drive of the for the In on purchases for BenefitsPlace greater also have bookings. year-over-year and while Benefitfocus wealth and for families us. entire must suppliers. this peace we for provides consumer their in from BenefitsPlace, one-of-a-kind reach BenefitsPlace we seller referrals purpose for value In our the consumers. industry-leading ensure progress first consumers. is gives Since QX, their participant we optimize participation. excellent new be of on buyer, revenue to to Turning benefits to on return and We open

X During brings Genworth. Allstate Hartford to country's insurance leading Aflac, Transamerica. QX, carriers, Cigna, BenefitsPlace of added our The total carrier we and the and This X, including

X helping plan benefit industry. and platform like of are choice adoption, to We representing partner. benefits consumer of provide to have as existing consumers and the health with the monetize distribution consumer products BenefitsPlace. in carrier and the QX, analysis, us XX solidify options Pet to We the consumers engagement our same network base to entire specialty specialty Benefitfocus will our and of million continue SOFA new also multiproduct HealthSherpa; cost-effective strategic platform. the aligning mind. lifestyle At InfoArmor benefits Assure. is ability the Med-Enroll through companies our a a and life. these The and we of while, deliver to investments leading adding families of our end to XX every benefits effect stage Together, serve their position ecosystem These like companies and to companies data-driven and wealth Kashable; adding products added of combination more at as like specialty demonstrates lives insightful mobile deepen peace platforms value best over time, the products

As platform, our wins. through ecosystem voluntary benefits entire our consumers specialty core purchase and

for optimize and commission our drives up premier platform, revenue. Carriers brokers increases gain to for Doing stickiness add through simplest products; product increase to customers; of and drives supplier an experience. consumer elegant revenue broader so the carrier product; is add participation of the of set access Increasing continue effect and the our greater more additional employers carriers to of of platform suppliers the and This on their We network experience terms. and employer a our a increases and suppliers. purchases choice more transactions higher consumer brokers. BenefitsPlace consumers in platform have repeatable

our strong well business. XX%. adjusted third materially the data increased retention strengthen efficiencies, consolidated of priority gross EBITDA rate core as In improved our margin and software QX, focused is Our our of maintained we operational in and to margin as investments and our over revenue through

strategy. capabilities our and professional which enables R&D. in we in our data focus a This in platform continued better in QX repeatable purposeful revenue additional is as recurring improvement. to us continue remain targeted exchange leads well as release, innovation. with Automation investments make of continued data services and we key In margin industry-leading and enhancements investments Our marketing to in from our extended shift incremental validation Further, fundamental our driving sales with gross to automation. area and margins,

demonstrated Global executive brings as President of leadership Most with strong management We helped the enrollment administrators, and North a improving role thought in over Mercer. our company world-class Last of invest capabilities global hired firms. brokerage as position, our benefits of our to HR leading continue Ken consulting Haderer functionality. at have extend capabilities foundation people he analytics X President release created also and America For a we newly Ken latest simplify was by a choice. recently, file and an new complex platform month, XXXX benefits Operations. we decades and to of of experience our reporting entered Vice Executive a To talent.

we've we operational our and progress continued our believe to leadership X in we'll We've a leverage opportunities; excellence strategy. operational have value, industry recap, are expertise our team. remain against and and sales X strengthen better first help execution. We've world-class our the to We the strengthening strong of we and solid expanding results. a long-term business of of We customer revenue strategic excited customers. to QX dedicated fundamentals completed quarters been never shareholder are to success. support our in achieve culture accelerate his with core. We've positioned To Ken to execution; We with invested half made row our and team a our on improving have success XXXX pleased to priorities: and excellence drive and of

financial Now the to our turn results. I would Jonathon call over to to like Jonathon? review

Jonathon Dussault

million, second QX revenue compared an increase by provide XXXX. then and the begin results financial for range. of for I'll Ray. and $XX.X you, Total quarter Thank the quarter guidance second XXXX, second reviewing fiscal quarter XX% was of the of details guidance above was to our and our

accounting the that totaled million, the was XX%; This an a Non-GAAP the million, represents and margin timing XXXX, to that gross as XX% quarter. software the XX%; compared contributing recognition decline quarter previously in quarter period of off-cycle and revenue. service new year-over-year. over was $XX.X associated migration XXXX. in $XX.X in was with enrollments is a the or in quarter the the margin of Our compares include was products Non-GAAP QX was to $XX.X of up reflects down QX $XX.X non-GAAP gross our large X% customers revenue margin over Employer The second loss non-GAAP second $XX.X gross services services gross driven year-ago to commissions improving and XXXX in items well improvement services million, software was down was favorable software $XX.X excess revenue timing gross gross sales quarter. GAAP professional basis share quarter. a growth in the profit non-GAAP XX% reflects and services $XX.X aggregate, $XX.X or This both revenue QX from high further. quarter treatment guidance was This $X in Total of million point scale software the compared favorably $XX.X the of X% and approximately improvement quarter the to work mix. a professional $XX.X XXXX. shifted stream. operating And by of employer second non-GAAP the profit by revenue XXXX. increase by revenue to the million, of retention. an completion combination million, the point services, timing loss gross profit in XX% the to million non-GAAP million, This over million, third of our as represents XX% XX% margin. high and for up of compared contract revenue the In margin. a revenue services revenue per an growth of software revenue results QX of to of net of end representing services as XXX revenue This XXX a XX% the to in growth, prior driven margin in Total an of comparison of consolidated timing of professional of and was difficult from software discussed million, primarily Breaking occurred of benefited and margin driven revenue margin. better-than-expected of software improvement $X.XX. profit gross from customer operational existing partial of gross Carrier gross basis XXXX. representing XX% increase due the non-GAAP million, revenue the

We EBITDA compares in was QX continued in of negative improvements our to QX the of consistent revenue. favorably X% our adjusted drive results. X% $XXX,XXX XXXX. negative exceeded negative also year-over-year or to guidance This and revenue adjusted significantly EBITDA

net adjusted the was gross growth, impacted Non-GAAP our positively revenue EBITDA combination recurring loss guidance. Our margin increasing prior operational expansion and of to million be and above was by $X.X continues scale.

by focus large and driving We our with in statement. million. $XX.X towards used million. the flow flow becoming cash In contracts expectations. reflects non-GAAP Moving cash in plus to $X our nearly operations, with by repeatable million ongoing sheet. QX of totaled that continue strategic used on QX sequential has flow our revenue. service declined Free deferred sequentially to from free transaction-based provided was we cash $X.X million. balance $X to flow, million. free On away $X measure ended This decline and negative cash million cash in a progress or Total cash purchases the XXXX, define equipment, the to we property revenue as This as Year-to-date $XX line traditional improved was cash shift operations make carrier positive. of

move to let's Now guidance.

of of million quarter shifted total of the QX. XXXX, that For QX a are revenue targeting perspective, expect profitability the a $X.XX from million previously $XX loss timing net revenue million we This we negative $X net adjusted EBITDA of weighted shares negative million, a $X.XX $XX $X million to loss From reflects into based XX.X of million. to third non-GAAP outstanding. to and million $X to items non-GAAP $XX of discussed on per share

shares loss Our $XX our of for profitability revenue profitability guidance a $X outstanding. to million net share per our of of revenue expect weighted impact $X.XX million the EBITDA timing based full non-GAAP Due we $X.XX year midpoint $XXX of the reflects million includes on the range million; loss million; $XX we revenue million of to non-GAAP XXXX. $XX and to adjusted XX.X and the net previously to a This million; execution, discussed. steady raising total of in of to $XXX guidance are

is business transformation. Our a undergoing

is will BenefitsPlace, team model evolving, our focused expanding ARPU lives strategic and positively this impacted is economic through be sales on by our shift. and As we growing primarily

host Conference. plan QX, to Furthermore, Conference our evolving events. begin Our Canaccord location. that execution, we fourth from revenue session several half In we are an investor and in comprehensive dynamic revenue growth drive to we In core, we high recurring XXXX that value. analyst Operator, the first stream To significant strengthening will of and our we Bank that, proud take are Growth transformation, traditional to are and business of sales are to are context questions. a benefit about specific repeatable, well investors revenue be transaction-based performance, will more our the time. better platform presenting improving date economic closing, educate SaaS our confident to and our now to overview for by complements and tuned please a this at better Stay quarter. create we event With planning opportunities subscription Deutsche platform margin the a positioned model, model. question-and-answer expanding accelerate our revenue this and strategy your Technology in at shareholder ready provide

Operator

[Operator Instructions].

is coming James. Brian question with from line first Raymond The the of Peterson

Brian Peterson

so growth the want that in it's expected you've better just been help us than far on booking impacting just hit a strong think year. Congrats this on Obviously, should revenue that far, to how understand, bit. so Can about XXXX? we you

Raymond August

is the And consecutive year. Brian. what that. continued so not increasing sales for up. looked pick strong and XX that proud our revenue we're by the both only -- take-up of year, several our And much, real for they really the marks we execution, we're accomplished our on at terrific the team We're -- of far and last of One, our caused XX%. third did We've we've at our year. increase where very this community. momentum logos the really seen way, quarter number thanks XX This we by a booking strengthening, Yes, seeing year entire broker execution we already versus factors

We who increase margins, XXX seeing and have over with resonating. our our We're XX had expanding. brokers a margins BenefitsPlace point Benefitfocus. We've gross really basis is launch our in up signed

on platform. insurance have carriers We our X

the And future to really have periods. specialty ARPU us drive that's carriers. We XX going for in

So about we're excited that.

in So and accelerate gives into it to our if me revenue ability you in revenue look growth summary, confidence great XXXX at recurring execution, our strong for beyond.

Brian Peterson

us how help to I we there's that but next you some next maybe bit, investors can much this year. growth add with year? think contributing and on you can the Could early, should monetization realize Ray, share BenefitsPlace, anything on on -- in about debate think just And you could how but with that a I hit it's still

Raymond August

incremental about us for to we it our we drives company. a And think that BenefitsPlace, Every as single commit ARPU. thank as what Yes, BenefitsPlace BenefitsPlace, providing us you. to carrier does they're is revenue

if those you long carriers, we at XX and as specialty it's carriers, a of any revenue. get look one relative the as as So the consumer whenever insurance transaction, additional repeatable X transaction purchase carriers revenue transaction to

it's In good addition, for brokerage thing our very a community.

every XX transactions, we're well. signed from are receiving over brokers our money as making said, time And we I benefits BenefitsPlace brokers. As up that

cost-effective for ensuring and of So providing very it's very a of getting to good a ways their employees by coverage care their employers stakeholders price consumers value. And at them. are they're doing it cover are high and good course, taking at better

So such really it's BenefitsPlace a on and network to Jonathon mentioned, this be to see Conference really the And in true QX. talk creating for as Investor at allowing Benefitfocus, will all is our going platform. us effect the opportunity different this us which more about we optimize We're great in that our roles to the and could be entire both our driving will is things platform of this platform of some the in the over as the QX that have talk on go about, for we're impact lives ARPU year. and about this model power Yes, our really model, on excited the brokers. and the how us

Operator

next Capital Ross The the of RBC with from Markets. question line comes MacMillan

Ross MacMillan

adds example? be had way last count, relative to color year us but you've would for think numbers Jonathon, about point, faster first the when obviously. was that is there growing I about size guess, for the for the you this this logo helpful. this? curious, than think don't And XX% on to just year, good XQ, any and I lives lives adds, even us to any or up any at up of way I Ray employer for super and are know logo think give at I those half, the But look XX% we average Are the

Raymond August

one greater gives look as down click make our into as for logos rate I Yes, ARPU looking see transparency allows into how exactly a that last asking. talk visibility investor said, have of at lives double-digit get we as we it. higher ARPU at to customers. of logo we lives our the percentage that about visibility calculate could also because the have things And to sure and of going on a a lives that at as conference. overall growth, we the metrics measure, our impact yes, and size versus growth on we're lives we're to a no, our the the we and us We're working That's you thanks you as great going forward, And great lives the measure key can and the increase. present business. year tell to year need from gives this But you is than it

pleased more the with on even logo but our platform. we're seen pleased with that So lives growth we're growth, the we've

Ross MacMillan

maybe That's just up. helpful color, then one and follow

services maybe, $X between help On -- what can X million us to timing? benefit versus software understand just was the premium quarter, the $X parsing million in some Maybe Jonathon, maybe came residual that the the -- between you that income factors. from, two

Jonathon Dussault

Yes, Thanks Ross. for sure. question. Absolutely, the

There So that in have revenue. components the are core into came quarter. enrollments of on incremental items we second some X quarter. in expecting quarter XX% the component some weren't commission growth some One software rate we really We effect was off-cycle drove that in that that. did posted our timing

some pulled accounting value timing we Didn't of treatment We revenue that And some third the planned some associated the and we favorable expected the about impact have what feeling with little revenue quarter, -- had on just in some of rate the business. to quarter. did that quarter. quarter. of have of overall the that good growth more bit so get, pulled the core XX%, a strong but software trajectory into contract the overall, it But into

Operator

from question with John line the DiFucci next Jefferies. of comes The

Joseph Gallo

is This on Joe John. for

already I to deeper into You it on but touched just wanted dig briefly, brokers.

and and signed from leads important new increase brokers? this, an XXXX? how early for seeing you conversations XX. you it logo with said How add the Are you was is I are think XX in

Raymond August

them a from Joe, consider Hi, of point we Yes. important to view, broker very us.

year, looked as wasn't it brokers a majority in at in control announced a the focus the As We a XX vast which at attendance this previously, Conference. made we big over you One Place, after. But we as before started large decisions we of brokers we the at market of it real company. for year, us had go know, Place model, the One area

So exiting above have community. we're we're momentum. early with a the pipeline XX QX, real pleased as And broker and with we're solid now the

significant channel we've the We've the of company, offered We sales understand of that the a very leading ensure world's well. us Ken a team. we our sure and great Mercer, a model and to made has truly investment experience services brokers brokers largest serve execute to Ken brokers to what As at hired experience one Haderer. we need. he's bringing that make

broker look the training We're the communities. taken have XXXX driver, time noise live number We're we As leads of a really a up us from a very, this They're as business. the we just them the very high. seeing or driver a of from the amount of at spending with headwind broker now, very -- them. us seeing we for lot brokers, see signing the away as with of engagement high. It's actually some logo

So where see we're and with to pleased are, overall contributing our sales platform. looking to year next we really them to forward real of

Joseph Gallo

think and That's had in hoping between front, go-to-market and split about partners. more quarter, more it an great over things, seems how that the then last I you to it's there partner SAP noticeably the the increased time. and And that's you for bookings on become sales just switching the was direct the quarter. important And mentioned hear update and helpful.

Raymond August

for thanks that. Yes,

sales company, pointing, model as evolving is As our last really over a you're year. the

model they've dimensional They've but in a single to a year, what quarter out built back-to-base terms strong a is, for a direct that to very mean of see addition team. very I model. done in we've logos, from multidimensional had a And that, you have sales very, we us. the So force, results by strong

significant transaction had Our very They've have very the quarter, for the us. pipeline for growing with state the large strong. for us. robust. that quarter, is we And the a is growth UTS announced and around this Last transaction governments. pleased pipeline we're SAP very state which is is us we business

carriers providers and that. ARPU about We specialty And of our we're continue what in for our our see relationship to on carriers, overall focus our platform. Mercer course, then, doing, and our really excited on expansion value are

So right diversifying. done across the his Rob the they're good pleased a at now with have very team fronts. And board. I'm very, all Dahdah and job firing effort

Operator

Klauber from William with The Blair. next question Adam of comes the line

Adam Klauber

couple different A questions. of

think an of would jumbo year, X large idea putting bucket they provide Can you wins wins. that? everything you now? Or give versus market are in I last just

Raymond August

Yes. Hey, Adam.

we're call enterprise look wins at we over we last this As logos, year, to XX as XX,XXX. say market, in it's we have materially. year, I what companies the said, versus at will but year-to-date, that look pivoting you lives wins, up I if

is we're So it to up one is from if dimensions, count lives both employers. get is you look at different continuing large The average increasing, measurably. the but

good there. seeing demand we're So

Adam Klauber

Okay.

like went see while. that to that should good news. look better then XX up -- hasn't grown segment the business, 'XX The -- revenue account And from It it growth should XX. of your carrier we in a Okay. That's segment? out for

Raymond August

Yes.

on a bit things Let for going carrier business little there's there. you me unpack a the few because

had as we a our selling products had is That X the overall, carrier doing sell overall products if X basically carrier, have have a And that me, with Transnational through eBilling, on and like eExchange, is wasn't on this very are platform, And a his in both impact to carriers platform. we excuse remarks, business business that for transaction, the our part we that we our traditional of in negative we're it business. -- business. well. the selling the carrier for to is X that carrier would rolled off. products be us carrier That But perspective, and last customer well, said X who carriers are carriers So we carriers have the But X on Transamerica. quarter -- from our growing. who real space we're working Allstate our the added Jonathon important that opportunity where the is now where year BenefitsPlace, and

so And to as continue increase and into that as increase really up. significantly that we XXXX go we business expect revenue picks to

If and revenue primarily recognized year what open the is, enrollment of at then you BenefitsPlace revenue BenefitsPlace, look the next through is profile booked the happens ratably. year throughout this with year

So XXXX. books our hit see that we'll revenue in

Adam Klauber

you will to carrier take through understand, that up the in Allstate, flow the or sign side when employer just the to BenefitsPlace So revenue side? so

Jonathon Dussault

of revenue with of with complement is through in, the Adam. to we drive portion we well that carrier really mostly business, attribute hit other it you'll revenues carrier as the the carrier margins repeatable carrier course, revenue I'd side, see the out high like the And A opportunity and And we business carrier as significant business. kicks margin the that from high-margin line. will the point into attractive XXXX, that strong run have BenefitsPlace core head further to an stream transaction-based expect as

Adam Klauber

Okay.

Okay. in flow cash last operating half this year? year compared of of And half the to then how is first first the your

Jonathon Dussault

Strong.

versus for So we last half $X half, expectations. year. a look our year of the by free We perspective. half first about at it the our original first really In first improved exceeded That's from total, measurement. flow million cash that

So well. we're tracking

track the on on cash the expectations balance end the We full quarter, have for the million remain for of of our sheet $XX of year. as over and

Operator

line the is next with First question from The Sparacino Frank of Analysis.

Frank Sparacino

more curious, like little really this you I could And performance bit a last year. more a in versus I'd guess, think I or interesting what's more yes, bit a little Jonathon, little factors light were the sales driving improvement, the capacity into in if just bit sales -- the that you have terms shed detail. Ray of Ray, were to year dig

of there those have you think rate but Are number sales like So about situation. sales things? the are on win the curious getting be the higher other I to a noteworthy assume factors in you side those also of opportunity

Raymond August

on as we've Yes, flat, last talked we no, the our thanks. team. the our of RFPs of is sales We're amount we and bringing me, the also level about maximizing our we for really rate. sure focus if to sales year big to thing sales really that pleased process, very win in, that with last versus And on we're all of continue to in sales investment. And But sales focus execution. of a increase the the relatively of we're but have accountability year, And look at capability one quality RFPs points of high continue note seeing making amount execution that sales to leadership. is and

I pivoted on direct to was As sales said a force. before earlier, we really of approach investment multidimensional most our where

Now providing performance. performance, SAP we're SAP in channel in increase significant the an leveraging increase that's

lives brokers. The for government, working the up we platform. community have dedicated team with state win have also the our the over XX the brokers. That's team That We first XXX,XXX brokerage the on that state UTS different of on a governments contributed focus a at signed over -- time. to

a that's carriers to robust We have into a have a wide team as working a sign pipeline variety as from we team, perspective, up back is solutions and installed a back-to-base BenefitsPlace base. state of well which our selling

us very those heart consumers, consumer. a our to better a at the the the compelling a in community, entire efficiency in that providing of effectiveness. carriers, So model with and are it and brokers, It's way be value by whether the proposition, clear is sales we're serve which employers the all driving together or really working clear specialty providers, working which of the seeing the

Operator

Jaffray. comes [Operator line Instructions]. with of The Deka next Piper the question from Nina

Nina Deka

Can size? see And When on to And that implementation? does University implement that that Texas you an of time? in how take general, live? expect getting you of the of time be long do an fully over you it do to update length provide shorter account

Raymond August

don't typically We of implementation. on thanks. the no, comment an specifics Yes,

was However, live And project time, will will the ago visited -- is and and on we tell we customer. I that Haderer, there weeks the can you couple be next of with a I Ken year.

So it a little a will be year, than bit live production. and in longer

our have effectiveness and skill set to that as We a large a state proven efficient more work continue done, something efficiency universities at that we're working do a is out continuing get because with a on of Typically we've is they case multistage, time how something where pleased implementations. governments strong rolling their and group with it's and working a experience. really we to these We're we with in expand. universities is

saw paid our governments. platform the the if even value and some effective. though, UTS, state And for more and that and look continue and and, just UTS seeing states. driving you So price get value we reputation of the more on we on our more really activity in at for to they the UTS Benefitfocus one experience we're overall things, price UTS when saw at in not efficient more and the And the value platform, to look it that the the comes and were cheapest you

Nina Deka

follow When a you Or at the table? then And RFP the bidding about situation? guess, I new customers, these are just a for you only were, it multiple often is great. ones up the employer competitive Okay, environment.

Raymond August

win multiple seeing -- end at and at pipeline. help pipeline, us to us. 'XX. and the look for pipeline the The competitors on earlier, with. I customers, in be channel -- seeing closes year an this a And turn competition. and having deals. RFP is RFPs year a excited the that we're us flat coming brokers through better the the brokers us really rate big key is that wide job depending as that this, brokers we're overall we're typically we that as into That's And into against a working but in into a we is we're for that doing variety our as last variety And The our partner, it means of about bringing our It's was increase We're could to so see the it really a of overall said part assist the situations. improving, be wide see key growth. of

Operator

of Chardan is next the Steven Capital. The Wardell question from with line

Steven Wardell

give into? into bigger Can What to those in year demand on of And sell last year? is you that how little a you demand? color markets this on buyers big and markets, that the us is the more going compared issues translating how in the lives the are

Raymond August

in demand. bigger past, state more mentality employer shift into, the looking I'm governments, But segment, that an go markets the they're where we're in importantly, we one and enrollment was, from, the seeing large things for going through it in overall Yes, seeing in in we're employer seeing big of we're this an platform." strong a for those is shareholders, rate, that are the attractive what an Now "I'm what And really the modernization. to large the is they from to employees products looking realized, are possible also for opportunity the they're an effective make but them that want their set price employees to for providing effective looking sure they're provide differentiate highest at their benefits to themselves that competition. of the getting employees benefits investment They -- quality. for

Back these overall into going important cycle. sales very that voluntary we're as we're are benefits the medical just earlier be part to used it seeing situations, sales very, of So benefits. --

multiple is equation. proposition important So the these companies XX interface products very, carrier voluntary XX industry-leading to nature important user large benefits an XX ability the price to and opportunity and those and platform, with the or X products, the whether the of products, platform But were that products an is the purchasers voluntary it'd friction providing, coupled platform solutions. at what employers part of the our almost with going that the or benefits access the with different total a very it's are and to reputable very be that pick of affordable to low platform who specialty with over on million consumers our SaaS X,XXX when we're on value

recurring In our our efficient fact, was in to was and reviewed access way win data, reasons and the voluntary we when biggest one benefits went selected. effective an of theme we're that through

that important for part a large for their a real seeing and and in they're looking we're So of driver the as market what solutions.

Operator

I his CEO, like to call session. to Thank concluding and now the you. over August, for Ray turn remarks. would That President concludes our question-and-answer

Raymond August

operator. closing, call concludes Thank for In everybody progress our want us. Benefitfocus thank to steady you, joining QX, today. company. improved had pleased our a and for and entire the throughout solid call. Thank we're very Great. I the joining you That with execution

Operator

has you. Thank Today's conference concluded.

disconnect may you your participation. your lines. for You now Thank

Benefitfocus (BNFT) 5 Aug 182018 Q2 Earnings call transcript