BNFT - Earnings call transcript Q3 2019

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Operator

Greetings, welcome to the Benefitfocus Third Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. The question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference is being recorded.

I’ll now turn the conference over to your host, Mr. of Investor President Vice Bauer, Finance Relations. and Michael

may begin. You

Michael Bauer

Good Thank to afternoon Benefitfocus’ operator. third welcome call. and you, earnings quarter XXXX

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

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

will me predictions, statements Before under statements you that remind include we future. discussion XXXX other forward-looking laws, about as today’s and might let the for expectations year full including begin, positioning federal security forward-looking such that information our be guidance considered and

and be These GAAP representing subsequent fluctuation including considered innovate a volatile associated of financial could any need cybersecurity to and our the These effectively, and are and of need environment statements views to recruitment as achieve profitability, regulatory today reflect statements views not as our to date. our to losses products and acquisitions, with uncertainties, personnel, of services, to of results, risks compete the a and key cause expectations. provide services, retention actual our risk useful risk and materially subject ability our the market variety that immature our should results differ only changing of and and products of from

on other XX-K risks factors refer our material a could filings. and our results, important to SEC and further Form of discussion Report For please actual that other Annual affect

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

press those about release. disclosures important in measures the find our can earnings You

to over now the I’ll turn Ray. call

Ray August

benefits fundamentally and everyone. working to are in United Mike. Benefitfocus the Good transform afternoon, Thank States. bought you, sold is how

third year-to-date transformation. quarter We the make helping in this achieve of progress and are and goal us solid the accomplishments continue to

us and to market to Benefitfocus. business our leader, core and be unique three key Multiple differentiators factors a across position but

what in designed not is storing increase It year AI-powered want they helps consumer our to First, with is the a enrollment experience and It around, remove the period. participation. engage benefits improve platform. open friction, two-week just employees

network. is Second end-to-end our

We our platform. scale lives adding are at to

is ecosystem workers as suppliers sellers, employees well buyers, to employers, and unmatched. strengthen Our It freelance as as brokers. add carriers, and we continues

employee Third and We from they is of BenefitsPlace business our on represent platform subscriptions buyers our carriers subscription fee lives, transactional pay platform. platform model. the platforms. the This and revenue revenue which users emerging and suppliers consumer sellers our certain end consists collect benefits and and pay on us purchase, our software for means, a our from employers, for

data scale The combination volume future drives the of greater of our growing and participation increased and revenue.

have incredible data asset. We an amassed

at data of needs with connections employer individual allows wants us well consumer. carriers’ as and Our and meaningful scale, particular the to offer a match as create an

we benefit QX, million. XXX,XXX total to net this added In to XX.X eligible another lives bringing our platform,

Importantly, lives. our growing partnership target executed benefit growth direct achieve on full remain net of year to to channel track the plan sales eligible our and team

sector, have carriers, multiple and strong of to lives. our lives code medical opportunities flexibility include of and platform, we employers. Because single large other network, of grow our and public the These based groups aggregators

the our extended economy. support we QX, to growing gig reach In platforms

offering make of a Inc. entire freelance wholly of Corporation BenefitsPlace online, available For to example, delivery the same-day a workers. Shipt, Target its workforce signed to and platform, leading on the owned product subsidiary robust

freelance offering the workers. the importance example our of of platform growing powerful and of a value and is of our They Shipt that an better set platforms attract set benefits, robust the recognized of effect capabilities. benefits of network retain

at they and is that the to their and We ingredients of to the benefits to the a consider Americans this believe have and workforce generational themselves with to growing. this and support be tens provide group shift. contractors, connect we This want. Currently shift forefront freelancers of of lives, the right right millions platform each is

broker platform platform materially brings XX. last of and model. had our over efforts, premier This effect further XXX, their we brokers to during These platform over our we example is the To we count from the added an the year of XXX where premier business up Benefitfocus are to capabilities less total customers. our That network brokers than creating recommend quarter. the

in significant us growth well positions benefit XXXX believe continue lives the beyond. net to growing We eligible and

to growth. opportunity continues make lives this substantial, influential broker impact the have of a is to our contributed part future the network employer While XXXX Brokers significantly positive today.

In last eligible compared up lives addition being net over to XX% to benefit year.

will announced The matures. year platform including participation nearly of the prior that our startup to open has strategies. company, following that enrollment as this exposed at his first indicator successfully and period, continue Compared BenefitsPlace Place the to suggests recruiting and the increased. our higher associate. number enhance retention have options own enrollments benefit multi-generational Natalist doubled program grow active will InnovationPlace, to our lives of amount One be or BenefitsPlace engagement products, and and launched partner talent

will suppliers will new on joining of products program cohort soon be be innovative the These offered BenefitsPlace, a next and month.

capabilities. Finally, And improved data is intelligence active. have engine our our artificial industry-leading we now analytics platform

positive we’re early are OE Our current with indications results. and pleased

guidelines when are open implemented, enrollment instances and seeing are engagement We is higher. our recommendations

our will our introduced for transformative the platforms’ improvements, leveraged position to from for enrollment year’s Benefitfocus technology capabilities, value quote-to-pay Place Connecture. entire Carrier Carriers. the Carriers acquired our This and benefits chain. open includes September, for continues AI MarketPlace MarketPlace At our best of automate expand. to we’ve in assets addition means, Conference the This In we next leadership

brands easy benefits mobile all intuitive to This in BenefitsPlace, smart a a access and voluntary consumers’ through from of number the experience. greater gives leading

transformative customers. with Our is pipeline offering is new product and strong this driving new and existing discussions

and more we Employer have automate Software is healthy create lining initial the extremely been experience. friction, of processes to positive. robust, Ultimate additional employers, better our product to with pipeline and manual vendors Management Capital and a Human designed of API integration For demand HCM is deployment up. eliminate This a Enterprise has to reliable

provide launched alternate QX gig And opportunities more our expected is does software the in than it and also growth as payment flexibility on emerging participation well future to in This consumers choice platform. to friction, benefits. options autumn release, new using support voluntary capabilities our ecosystem economy, increased consumer more remove for SelfPay as we

Platform core growth, increased the powerful engagement technology strengthened our and more of business.

and is business. is element Today, critically of asset our unmatched businesses have we that data. Another important property a data wealth, powerful health, our of part an lifestyle our

expect centric tailored experience, extend believe drive personalized growth. customer the a benefits our future to more data ecosystem, for and we can growth continued competitive and differentiation entire We with investments our our we AI engine, analytics ecosystem accelerate combined

data of excited the to are the We power ecosystem. better about platform support benefits value entire the of strategy our and our

Over open the days, will next activity hit enrollment a XX pitch. fever

We are ready for that.

to best Our experience industry. data the have the investments Benefitfocus provide in positioned

accuracy We far in data at our are than market XX.X% better the industry performance. leading statistic

We year’s open entering next are our growth excited will success week enrollment our To with conference. host off are and this about XXXX we opportunities. build kickoff momentum sales

At sales are our win. includes and other influencers learn selling expanded partners this and entire will premier coming conference direct team, who of include to members the and channel year’s brokers our ecosystem. to This have together event, collaborate, we

our performance. am pleased financial Lastly, with I

EBITDA non-GAAP This is that and year, performance our well was revenue grew platform last XXX basis stronger. our expectations. XX% Our above increased points confirming is margins gross year over and last

value. For shareholder has growing positioned increasing our well the leadership. and past revenue and platform, are With our our consumer we two years, advancing increase to diverse team on fundamentals, streams technological engagement our focused strengthening

to I’d Now over Steve like financial turn to our to Steve? the review call results.

Steve Swad

with a begin call, of with CFO quarter of Ray. since Thank provide few learnings results third and financial as brief recap I’ll guidance. you, then our I’ll Today last conclude my a the

learnings. focus of is my one our growing It’s with on that and primary increasing start engagement. clear Let’s live company’s

should transaction As lives increases, software continue and our grow grow should to engagement revenue margins expand. and and

to the customers In and last XX became BenefitsPlace. base value will to of me addition, days over that meaningful by exposing be is our existing clear created engaging what

the with engagement. to-date us participation are success of to the additional and BenefitsPlace in front We pleased drive of and opportunity

for value are for their carrier offerings, very are interact sticky. carrier’s relationships a of carrier in have relationships enables components The better appreciation to [technical the are products These I Second, the our these strategic customers. the that product important our difficulty] relationships. with

it deploying makes grow and in have lifetime large customer sense area customers these capital as we’re to costs. that values business, So this acquisition of low our

will guide open to have And talking one experienced committed disclosures to help enrollment expect will that better third, time and I full after I with business. our and as EBITDA. At on to to quarters and our the we time, disclosing to of more XXXX revenue I two you, you business. call, additional understand provide also QX At our are listening information CFO.

to business million to pace quarter exposed will this enrollment strategy to for was it of Overall, we financials. our lives net benefit incremental for with part to revenue eligible updated and eligible this Ray BenefitsPlace the keep our economy solid beginning this our turn lives definition XX.X mentioned time, We include believe we benefit the activities, ended open first Benefitfocus. of drive let’s net workforce. Now and growing Therefore, transaction season. a workers. quarter with gig the

total the quarter our XX% of range. P&L, to million, high Moving XXXX at compared of for was to and end revenue third quarter increase was an the the the of guidance $XX.X

revenue. revenue primarily was revenue subscription quarter Third driven BenefitsPlace by software and

by offset us renegotiation our community. in prior the the allowed discussed which remove Mercer growth partially of was with to QX we’ve As friction contract, the broker quarters, revenue

our growth was low impacts XX% quarter Excluding of Mercer, the range. revenue the third in

results reflects million our ability from contributing from the partially strong in Connecture combined to delivers synergies revenue. the relationships. $X customer nearly acquired by business The secure Connecture performance quarter of team’s

services indication quarter, incremental of an in opportunities. professional resulted future as the This revenue and in and software

of the to with integrated the acquisition by IP this We financial on and very have resulted and from year. Connecture the we’re the pace are performance end strategic deal pleased that fully

in the the from QX Mercer, software revenue total contributions mid to requests the grew the reflects our high single-digits Excluding on XXXX. revenue less QX change Connecture change compared service rate in and work. margin focus impacts The from and growth of

will As QX. the previously discussed, year-on-year we that remain growth in confident accelerate

platform in and services $X interest customers the an was compared growth driving increase XX% prior total in The and subscription period. reflects which formerly in from contribution by our approximate BenefitsPlace. of software growth million an to Connecture revenue, $XX.X owned continued Increased quarter, million both is the

Mercer, the Connecture in XXXX. services from double-digits customers grew and contributions Excluding low QX total compared the to software

QX services acquisition of professional The XX% the was total revenue reflects million. increase $XX.X Our over Connecture. XXXX

XX%. GAAP million, $XX.X of margin profit representing was gross a

non-GAAP XX% a Software QX was a XXXX. $XX.X gross margin gross profit Non-GAAP QX This from million XX% a represents was was profit gross of margin in margin. non-GAAP to margin million, margin. million, non-GAAP or which profit compares is gross non-GAAP up XX% a This gross in the gross gross favorably XXXX. $XX.X $XX.X representing software XX%. Non-GAAP XX%

to benefits in from toward BenefitsPlace and margin activity quarters, reflects the operational gross improvement prior low organic focused a Similar transaction automation from subscription at data revenue, investment and continued and in costs. margin efficiency shift as grows marginal scale our platform high improved

$X.X our was continue and our to in adjusted also QX roughly million. drive XXXX. We favorably EBITDA This adjusted to breakeven exceeded EBITDA. QX improvements in compares guidance

Our adjusted scale. operational which revenue EBITDA expansion by increasing growth, recurring our gross impacted positively margin and our

million, was $X.X ago loss to net to $X.X $X.X A was share from the a in Connecture loss expenses per largely operating loss in period. $X.XX. Operating year-over-year net of compared related net year The a expenses. loss resulted million, increase million contributing non-GAAP

$XXX.X cash purchases flow, balance or in in and measure define as and We the move in with a down negative of QX we to from $X.X equipment non-GAAP and was quarter. million million, let’s plus quarter. $XXX.X Free prior used operations, the Now of cash cash sheet cash million that property provided equivalents flow. the cash ended

expect single-digit flow positive generated free quarter. next cash of millions We be to

guidance. to Moving

full $XXX year expectation million total the $XXX million. are reiterating we For revenue our to XXXX, of

to EBITDA from million adjusted million, to $XX up range increasing million $XX our $XX We’re to million. $XX

million, to XX.X We to improving the our which diluted basic on average also and loss $X.XX $X.XX, million outstanding. per a common million of are non-GAAP shares net net represents $XX loss based expected share $XX weighted non-GAAP

to to XXXX early guidance, too is it provide I’d some While directional like color. provide

about BenefitsPlace. growth from opportunity are We emerging the excited

about channel. excited MarketPlace the about solution strategic excited are represents the of for we We broker our for these Carrier company. significant decision new to growth and fully Each are up our opportunities open

long-term. it choice relationship opportunity our from with a you but the creates the much As renegotiate we’ve importantly, near-term friction larger to pressure, shared Mercer revenue removes significant broker over before,

we for that, With questions. will it up open

Operator

be At you. conducting Peterson Thank ahead. will Instructions] we question comes Raymond this James. The a session. question-and-answer time, from first Please [Operator go with Brian

Brian Peterson

question. for the Good taking evening, gentlemen. Thanks

with start I’ll maybe you. Ray, So

you customers know that mentioned right Just through we’re stats open now, what some you’re or going in on share of insight process? seeing trends that are enrollment any can terms through you going I engagement, about

Ray August

Brian. Yeah. Thank you,

of innings. quarter open so the in we’re We’re has in to open but early But it enrollment, busiest is enrollment, seeing what positive. been comes extremely our days when QX far the early

As what have number and counter platform, our interacting a with previous to with XX% it on starts on so period, a with decompose platform enrollment, us. lot up we our happens an of open the people by our more people lives

at And then the have to we look of buy. they number products available

We have the participating you our people number and is the those products, our ago. year thing really, twice had making than third after products in platform is have of that and then platform products. we BenefitsPlace and the click on purchasing a people the And the

intelligence BenefitSAIGE. a year, significant reach and to out help that very, we’ve right people And investment benefit on proactively artificial with them the to for their us in last selection them the our families. and And over make platform, very allows product made

In alone, sent messages that the decision. they’re the over making a last right we million to so on guide platform help month to them our people

when the of overall platform, available number pleased our So seeing, we're the very, participation to that people we’re very have the on that our them, at look with results. we products

to gross it Also in really one data you you but of that And proud quality to our the our speaks good we’re enrollment. also improvements, of this in investments up if look we’ve automation, and things showing reporting the us the data system. the is, made customers and at of are which see our open margin feedback

typically rate, We XX.X%, have that transactions that data the first-pass means is is yield number things positive the of and off correct really that’s in our which a the incorrect. a the coming payroll are system, from system X.X%

in new open our So about is, people get as of the highest And same you are we first-pass things the enrollment, you far measures yield every enrollment one I year love we year, every a the the industry know, believe industry. by this think about through go open process.

our BenefitsPlace last much We from learnings we the going get next first saw open year. our that last results. to year, had going improved good we’re are us in year over very year enrollment. year, the So This even make to and results this stronger are very,

far. really enrollment So with what pleased we’re open seeing with thus

Brian Peterson

this think appreciate color dynamics. in for Mercer appreciate Steve, hear. all XXXX maybe a we you’re at you to can directionally And that Mercer giving point, follow not in contribution maybe that good That’s up the I XXXX? but the on Thanks And should and share about anything I guidance terms of how guys.

Steve Swad

Okay. Yeah growth. pleased expansion, on with quick pretty with I pleased comment a lives was rev with pleased the I Brian. growth, get XXXX, growth with pleased quarter. before and just into the margin Thanks, the EBITDA the

closes And – color be did got share shared the that with so XXXX. then color. around year year left well as and still you how I but to out, XXXX, need it and did of to some BenefitsPlace – in performing the I relates I discussion I seems that’s give we in that’ll part point estimates. our six didn’t see weeks I

positive in positive space, the opportunities remove influences that’ll be and be to The continues of is friction selling the seeing strategy broker for carrier you’re our part seeing shift channel our We’re discussion is up to XXXX. we – broker activity. open made to channel the in

moving XXX our our are we’re And of up removing away don’t see long-term. pointed brokers, a we’re and about out, shift than legacy more than friction though which business our year revenue I we’ll brokers to shifting the And more ago as time. XXX tailwinds strategy know did I highlight XX provide decline a over and also continued at you now and this I number in or now. the think ecosystem at the Mercer business, brokers, embraces from our But part the away – will over that of

Brian Peterson

Steve. thanks Understood,

Steve Swad

Okay.

Operator

with Amladi ahead. from question comes next you. The Partners. Thank Please go Nandan Guggenheim

Nandan Amladi

Hi, taking question. good afternoon. Thanks for my

about Are Traditionally, relationships a is work? of actually benefits. support freelancers. how context freelancers suitable very sort entity? for establishing freelancers, your this you In there has So this with for a the still employer directly platform the or does of question sponsored been sponsoring

Ray August

thank Nandan, you. Yeah,

adding We’re and to companies we the offer. that about portfolio products gig really excited the of economy

just know, an As only obviously really not TAM you providing taken is as increased off, economy for the it’s gig well. us, but increasing our and opportunity is

shopper we’ve all In the really Shipt solution they our like of days of to theft Shipt And XX on a number is They’re even products BenefitsPlace in call, products we their, offering and now got shoppers. are insurance, and them Shipt, a implemented case up the sponsoring by entity excited that and buy from identity insurance. out the medical progress, go themselves. and been what pet today,

into and providing see all So really others. XXXX opens gig a this for opportunity us workers, benefits growing us the now to to sure we consultants big and to is up future and make workers also solutions

helping expansion and So to TAM that we’re that the this economy provides gig also well us.

Nandan Amladi

for quick Thank And you. follow-up a Steve.

fundamental As you funding efforts lot where be adding of your Or as platform? continuing focused year, build up products you that to platform do are a to well? the a and draw brokers more R&D to in still more R&D would look features the there expect ahead next will network,

Steve Swad

be with talk to about No, more we’re hearing specifics, a is today theme. – we’ll platform you’re back our AI come to themes going but are that continue you to the us going

message year, our next next and to and the we to going to I’m hear about pleased platform be Carriers just will ecosystem you’re a the into the of data be call. job we MarketPlace today talking theme. theme. for – serving is the back on Our data to of that refine come continue a going as accumulation we’re is going is you themes

Nandan Amladi

you. thank right, All

Operator

The next with Thank Chris Sachs. comes question go ahead. Please you. Merwin Goldman from

Kevin Kumar

a This of products maybe mix mix as and a talk about open is BenefitsPlace question. a revenue. last – for negative impact into ancillary quarter an there taking timing you on you evolving? kind head Chris, of and of you you Can Kevin off my and about your is on enrollment, can specialty, that update Ray, talked life having thanks for higher versus the how

Ray August

Yeah, it’s as planned. just operating we

the our at of halfway point not yet open We’re enrollment.

holding but have that weeks we’re rates. said is I of thought and enrollment of real activity, ahead quarter same. in as the would weeks We is the participation us it two left very remains take biggest guidance to open our be, mix very, what six the the we good seeing true But our high

Kevin Kumar

it. about Thanks. contribution talked Got brokers, the overall And broker of last update Any maybe there? think the to then a progress terms I and on the percentage kind in lives. you quarter of with the community

Ray August

we we partners than Yeah, other quarter. we our brokers year the stronger next brokers call on sellers our our sales key last was a in an in will impact for next growth. in lives make bring XXXX our our quarter, broker this seeing And consistent And planning Place platform, which in and brokers with it and community week have had gathering, whether our closely internal very working fact what together people, to very where pattern Seller we’re there XX% we’re our be ever. Charlotte,

Kevin Kumar

Great, thank you.

Operator

question comes First next The go you. Sparacino Analysis. Frank Please from Thank with ahead.

Frank Sparacino

hear okay? can guys, Hi me you

Ray August

Yes.

Frank Sparacino

in changed? terms talked of what much Can as would net see lives. a imagine specific to be on it the going then can relates benefit there change the in And QX, growth. of just not definition the about you eligible you – you Maybe change lives to in first, we’re I more

could the high QX guidance? entirely versus about you low talk as So range assumptions end you assume end Thank some by I this have that you. of if in but maybe driven just why BenefitsPlace,

Steve Swad

group was sentence The think a that our opportunity. Yeah, definition consider pleased that so freelancers. kind opportunity a simple. freelancers that we and we’re serve considered well. of in that’s kind is Steve. We And just stepping will platform It growing tap up this didn’t update into to added of

rightfully in As middle still enrollment it variability. part I’m taking the reason on for Ray or and for out, – we’ve open close that’s we’re a to – eye that relates point mentioned of of close we QX, the got a the mentioned BenefitsPlace the guidance keeping you and and I

hold of We think transactions my two difficulty] prudent those on you we also I’ve have [technical the got some note lifted revenue to just on and EBITDA combination eye will it carrier me caused that that guidance. was to

Operator

next from The you. question Fargo. go ahead. Please Thank Jamie comes Wells with Stockton

Jamie Stockton

I a guess know and other continues that evening are talking number thanks I think on these from source more about premier they escalate. us these this smaller brokers. Are there’ve from maybe you what been would you about good help direct standpoint? questions. to guys Yeah, kind questions the for leads effort? you’re some you the of size taking first, But Can maybe that similar my to getting Are businesses? entities the a

the and line newer the been influenced XX% relationships of you now to really signing the from of be I’m that a they’re to you’ve been bringing giving trying in impact, or that from in leads of that broker to appreciate last the that these have guess two going with channel. ballpark two? least said guys on customers is year you I some in like way kind years But that year think have something normal it in up that at are start by of have your I some about you’re an now broker lives or

Ray August

buy surprised which more their them Yeah. that just alternative a also that is customers our the products Jamie, real customers BenefitsPlace progress will about they given BenefitsPlace thanks. What pleasantly They broker way lives, but when us select products. their contribution how expand the revenue, ramp a they’re fact to and and with their for typically great makes add us. as engaging and we’ve with been and really see up excited

of business, moved a is, more way year medical could where actually was to where to to solution this it sales it ecosystem, providers, talent allowed we a voluntary force. efficient our brokers created it much for more namely at us good really sales, our we providing deploy last to have cost allowed resources carriers, parts out we so get value year The our look very of to other a us of

Now we us. there are from out brokers who that have leads generating

at clear that we’re the looks don’t planning We And don’t We’re with – to us week able excited will into that contribution to our on line insight contribution sales sight for it that working like. be of which make. quickly remains next yet give make us. starting meeting really to really seen good how them, what year be they’ll But basically the exactly to online. they next come have next

we’re But forces with us progress sales allowing say will us I we’ve also had percent But sales and important XXXX improvement an continue in and to sales. will multiple pleased increase very a our is on spend that growing to to very the essentially we material XXXX, investment, we in into scale there. see

Jamie Stockton

customers? the But do broker rate that to just tend you influenced average from they a that do to X be by in relationships, are kind sized bring standpoint tend customers the of

Ray August

with Yeah is we’ve very customers that consistent past. in the the been adding

Jamie Stockton

Okay.

Ray August

needs customer a Every broker.

Jamie Stockton

a they And I a said we similar as of million down a other couple contribution that million should guess that $X then one enrollment? Sure. of work if questions think $X kind because I there. $X It during million is it sounded was pro the Connecture quarter. question pretty it the some to services have contribution in the come been going think of do as maybe Steve that before quarter happen of that like piece, around fourth that the it is my maybe about a which open during healthy doesn’t and One, like that open but enrollment, might sounded not,

Steve Swad

the a top financial $XX synergies. I perspective; we Steve included million pleased from Connecture and is is it quarter $X pleased to I’m backup one also Yeah, line. I’m for that does mentioned with this this paid of really that business a acquisition. million-plus in some

I the first the and the like time, the for pleased think we than folks folks going Benefitfocus together with both business was I and did saw synergies, without better market you would the So Connecture have the at apart. together

on we As expect is strongest QX what QX. saw relates back in we revert quarter business’ to something to your question – it to quarter to the QX and similar that

Ray August

And the Connecture that assets our actually, just a Connecture is view we’ve assets business to of Carrier enrollment front-end add impact and business. but the rating, we Benefitfocus for most and we’ve the and impact what impact, use done importantly one about. one solution. is, with our with very have Connecture a like and created the And Connecture on for this combined on as economic the and and really assets as point that, there strategic of I from of really that’s And but our back-end we’re that’s catalogue billing for carrier which positive where product we MarketPlace our quoting drivers this their pipeline

Jamie Stockton

Okay, thank you.

Operator

Please Thank you. The Securities. go next Wedbush question comes from with Dan Ives ahead.

Strecker Backe

for on Strecker is Dan. this Hi,

update can about about just And lives, individually you’re or lives like and BenefitSAIGE but to to be that You would different great. the how the call quarter? in out a bit level, how a they Thanks. talk on three from you’d earlier, anything trajectory high types XXXX? you little thinking performed then touched just of then into And

Steve Swad

about some We the maybe to we much color at And ended you bit at after quarter want we little six we also with XX.X in more And descriptions get my XXXX. we’ll just I of like we in the with do we’ll second talked feel how – weeks. and detailed close more we’re lives and a I was at line our I’ll that. And and XXXX? Q&A up wait out of the question comments, to then next gave million, the with of aggregate That’s these good beginning in color kind your XXX,XXX. expectations. come back about look

Ray August

and we take and way instrumental I’ll an AI-driven question. BenefitSAIGE Yeah to platform. what think And BenefitSAIGE is the the platform. And BenefitSAIGE about in is platform fact, our Yeah, our to need is make. decisions analyze help to to allowing them proactively do, us it allows and have data people inform we reach to us that and this of out they massive

year in two-week during enrollment then benefits go But they’d period. that time year, to recommendations to our a and back of allows the it’d it you come their typically look past, analyze this if every enrollment make enter information data, an be take the of it, in year. for platform, at period the site, the us somewhere to So they’d BenefitSAIGE, two-week regardless people to on

reach the So and to can you’ve on somebody surpassed limit say, policy. insurance hey, out just your we deductible

would them So XX turned your medical you time medical their just discretionary got years good just own plan in now or procedures bring this be be a to raise. a on to old, it’d enroll time a travelers or good

And this now your to contribution be XXX(k) great top HSA a here time off – on contribution. CD would

So this us two-way in have really to with everybody our relationship proactive allows platform.

through us or they’re their relevant whether from emails So data that it’s has lives families’ their with lives. and impact on hearing an notifications

Operator

you. Cantor next question with Steve Please ahead. comes Thank The Fitzgerald. Halper from go

Steve Halper

the the Hi, through could deferred on the balance revenue around us sheet? mechanics declining you just walk

Steve Swad

to what’s quarterly significant. basis. future Sure, bill well, this revenue let That happening our basis of me happens relates or of is the primarily a It on bill is key Steve. in – not a as up. monthly is because many it That companies’ much business, back with metric SaaS deferred was so a indicator

large question install. for our match – the of carrier your recognition of we to And with explicitly, most but relates business, for services the that and of to that professional answer installs the to timing have

then comes the comes statement. it the on and for – while into it into sheet a sits the So balance income that

it, it similar the is, the is sheet treated look that year-over-year there balance Secondarily of as comes you legacy Mercer especially some on off. piece of the in Mercer then and that’s businesses smaller much

Steve Halper

you. thank it, Got

Operator

next The you. comes Please ahead. question JP with Mark go Murphy Morgan. Thank from

Matt Coss

on behalf of the quarter. is Matt have workers? lives questions. for Mark added from one this definition How afternoon. that you many I Murphy. taking came my Hey, This Coss Steve, XXX,XXX gig then Thanks of the good up. now do expanded And follow includes think

Steve Swad

specifics Yeah. about embraced we opportunity. on were We the We excited the opportunity. that. Matt, don’t give

serve And them the lump the of individually benefit the benefits you we them If And each focus lives cohort this other tailored basis. of buyers and ones. the needs way with company, the a about same on all as benefits. sellers think it’s together the connecting

Matt Coss

open includes of in it’s platform. anything voluntary about very any think growth then that part still And equation the growth would these indicators – other the benefits ARPU or the make of or of so sort excited just path initially optimistic I and acceleration ARPU. that in – of I side? enrollment, the on part lives revenue is are acquiring the have on great. the Okay, this seen of you and early you but know growth I know people part of ARPU you’re But the growth certainly

Steve Swad

about going when remarks for to talk to the that I’m quarter XXXX I’m you happy going be and days. more my open to remarks I have I’m – ask wait me going have XX enrollment Yeah, that in can and then. about close. to to about

Matt Coss

it Right, me. for thanks. That’s

Operator

Thank you. The next Markets. question Capital Hedberg comes from with Matt RBC go Please ahead.

Robert Simmons

Robert Hi, Matt. this Simmons on is

changed usually biggest there? XQ season is larger was Has selling XQ year. and you something this So your much fundamentally for

Ray August

is biggest as and And our had is actually the well. by far XQ season. reverse. we XQ an is XQ a strong selling very add-on selling strong very actually as QX and No, season

always our So, is biggest traditionally selling season. but QX

Robert Simmons

Okay.

So with last an year unusual at of thing it then $X.X kind $X.X million? million was the

Ray August

very, QX. look than – QX last was Yeah year’s you year much and this if was less very

have actually combination in much, that into of QX a of the lot So year in this higher. year both or and QX deferrals taken numbers much a are years, QX split last QX. But

Robert Simmons

you SAP can partnership Great give updates proceeding? on and with the any

Ray August

Yeah.

very are shortly. announcing of all partnerships the vendors, with we As that us. and be Ultimate we’ll we’ve others Whether brokers extensively parts our relationship to on about talked spoke or HCM have several call about be in our important we it’d strategy, very,

to SAP provider of of and with is well HCM theirs. the our performing important a well. SAP is their perform relationship really continues most and be pleased course, solution partner to But SuccessFactors we’re

Robert Simmons

Great, thanks the questions. for taking

Operator

you. Thank

turn We end question-and-answer the call over remarks. I Ray the closing Mr. have reached to session. for of August the will

Ray August

Thank you for joining our QX call. earnings

many unlocked opportunities. past reflect shift the on months, I As has platform XX our

larger insights than ever. data and more stronger is asset Artificial network Our is Intelligence our delivering much and valuable robust. is

will we achieve that confident our call. goal transforming benefits bought, country. used very sold of This are how the across We ends our and are

Operator

at time. may your participation. today’s Thank and your you concludes you. This Thank disconnect conference for this you lines

Benefitfocus (BNFT) 6 Nov 192019 Q3 Earnings call transcript