BNFT - Earnings call transcript Q4 2019

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Operator

Greetings, and welcome to Benefitfocus Q4 and Full Year 2019 Earnings Conference call. [Operator Instructions].

I would now like to turn the conference over to your host, Mr. Michael Bauer, Vice President of Finance and Investor Relations. Thank you.

begin. may You

Michael Bauer

Good and Operator. welcome Benefitfocus to Thank Year afternoon, XXXX Quarter Full Earnings Fourth you, and Call.

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

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

first be forward-looking compete uncertainties, quarter views including me GAAP let retention statements you market associated today's changing cybersecurity materially and risks products and These statements, the personnel; and innovate statements losses volatile services; to including any remind guidance such for subject continuing reflect only statements include to fluctuation of subsequent to other risks laws, results; information as under These are key immature financial and today provide full recruitment the of Before our expectations we risk; a begin, security and and products our results and profitability; expectations. variety acquisitions; from discussion and the our our could achieve that of about ability our and XXXX considered and should need useful year a cause that regulatory services; the differ considered environment and and actual our for will federal future. with views to need effectively; be as of to predictions, that for forward-looking date. our not might positioning representing as

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

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

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

I'll to the call Ray. turn over now

Raymond August

am Thank you share significant you, everyone. Good with to afternoon, progress. Mike. excited I our

focus the business, today's areas our call across and broker There XXXX, MarketPlace takeaways For last our achieved performance. broad-based channel. we year BenefitsPlace, innovative financial in our quarter, call: significant QX and on we including three and improved adoption growth namely continued three are our the full growth, of Carrier solutions discussed lives for from

with of our lives consumer our platform. XX.X added platform lives In we First, million lives. number benefit is a net over in benefit accelerating has XXXX. the of to over eligible QX, XX increase XX% scale grown on The total million, representing net eligible XXX,XXX

with pleased QX. this are We growth in

cost-efficient our on end expand. continues platform as Our a the a distribution role At These the of channel promoting platform. services of brokers recommendation element the success utilization achieved had we Benefitfocus our our broker will XXXX, and scale have network key us premier play efforts we XXX a tremendous of capabilities. effective operating investments made and give Increasingly, our leverage. and brokers be to story of key over the have as and we in

investments Second, innovation paying off. our benefits are in

accelerating million AI-powered upselling is BenefitsPlace more awareness our lives continue purchased adoption quickly products solution. new million over materializing. our the our on open to our Customers consumer seeing BenefitsPlace BenefitsPlace metrics, net products. platform. activity Based driving implemented been BenefitsPlace transactions eligible carrier call, possible of carriers enrollment on in it new in has BenefitSAIGE, platform, and on conducted is XXXX. benefit offering medical X making This quote-to-pay Our medical platform massive instrumental our and last to is of our usage. opportunity, who Since XXX XX.X a

investments in instrumental Our to on success. and our and innovation are growth focus

are diversifying is that continued and We BenefitsPlace excited the enhancing growth earnings. of our

representing X%. the previous full by XXXX favorably improvement revenue $XX XXXX XX% performance XX%, over over and expectations. financial growth also year QX exceeded revenue million, QX grew of revenue EBITDA comparing better generating is XXXX. XX% transformation our XXXX an to EBITDA grew year. was Third, growth.

transformation. progress pleased phases continued with in we driving platform our of am all the made have I

our As a progress, result our the range were our of QX of results within exceeded guidance. or

benefits industry. company bought, with are And make sold used transforming Our the platform assets scale only the it are across and we strategy the data and happen. is how to experience,

Let of A an its example share mean. employer what recently our service workforce. platform me I chose large to

as And tremendous and to that address through and across ability connect in cost data greater there, to is allocation end-to-end efficiently our pain ecosystem. like and to value am insights best plan into deliver into benefits API costs -- confident drive as Benefitfocus decision. positioned deliver the health Our remove utilization points, are friction. benefits well health I customer they There engagement saw this out and insights more deeper factored capabilities AI numerous customers greater their

for by provide fueled QX, our we a will now added across for all each specific how scaling area platform. of In we business. areas transformation, continued the I This quarter. XXX,XXX our fourth many record with details of was our are net benefit lives, starting company factors eligible over

XX% medical lives. year, sector, across we the the increase benefit carriers, million X than For all public had employers other gig and areas workers. such growth This of reflects of net groups economy aggregators more eligible as our business:

strong. efforts was large SAP our sector, In paying With performance the off. are in channel employers public our QX,

continues growth Our our to well accelerate as drive and onto Premier lives program strategic scale broker channel platform. Broker as

Brokers represents from the channel XX at expansion entire increase to in industry. year. XXX and climbing broker X demonstrates rapid growth distribution benefits end broker The in This are at increase XXXX. just the premier drive the Our channel this the influential part XXXX with end a of over across strengthening relationships XXx our effective of of continues, ecosystem. to vital

the make significant well selling position a impact and us We expect upcoming relationships these for season. key to

will over with a offset broker-agnostic Mercer be leading confident To revenue changed the fully in enable that to our channel strategic outlook. short-term we XXXX source the greater our headwind We longer XXXX, activity, broker in our relationship of no is open decision to revenue Mercer. remain time.

industry-leading solution for returns. industry include the carriers. of lead investments to benefits consumers; intelligence initiatives; adoption All end-to-end investing our are as efforts innovation data better as continue positive We producing financial artificial well build to quality inform in transformation. These to

greater In XXXX, from software these best with has solution. acquired Connecture. transformative driving with create industry's well solution Benefitfocus solutions, and by automate discussions leading a for and experience assets mobile consumers end-to-end so the assets entire smart, of enrollment, open existing from value of through brands Combined This we chain. the gives It unique received number fall customers means of access commercial will We've quote-to-pay the This to does easy prospects. a voluntary this been intuitive assets carrier existing medical the benefits the acquired only BenefitsPlace. we certain leveraged in new and is industry. This the benefits Connecture. our

pleased example, strong carriers chose major effective to QX for X manage that selections Health, XXXX with our Health, help XXXX. will very and our are further strategic are for to Optima's of benefit believe its care recently Optima innovative to our Optima solution are produced solution carrier These Blue contribute X simple and has X-figure transactions, revenue foundation growth. National to in each for We these health Benefitfocus customers. serve Associates. wins We date, in better QX signed Premera X signed Teachers and Cross

we throughout continued robust, strong remains anticipate pipeline and year. activity the Our

close from past been the CRO. takes the has contracts, carrier's Chief evolve insurance less the now moving to COO And several years has markedly take from to the to the the What Over lead Operating Revenue shortened. our Officer our a months, segment year. dynamics Officer sales as approving sales Chief process the carrier within than used to time

due is recent closure customers. on transformative the Based proposition and wins, the bringing our value this improvement time of we're to to our dramatic nature that strategic of

creating customers continue the We growth and accelerate of are Benefitfocus. to confident for that success we the value will our are

medical market, purchase sets Our apart enables carriers one deliver best-of-breed unmatched their complete innovation from to solution members. platform source: allowing to Benefitfocus. benefit the medical Benefitfocus from a to It carriers

Open enrollment and of purchased approximately was billion, in largest most expansive our improve. Total to data platform accuracy a on the $XX industry-leading company's our XXXX record our premium was history. continued and

basis analytics and to voluntary offerings. consumers in BenefitsPlace our attributed products. XX% industry-leading data $XXX to during pleased participation are process, benefit assisting This XXX With AI-powered for voluntary all million the with platform, approximately product our premiums points selection over benefits represents increased by We BenefitsPlace. nearly BenefitSAIGE,

QX, HSA, we with the solution provider. expanded of care health FSA consumer-directed BenefitsPlace offerings our leading In addition ConnectYourCare, a

very producing excited with our of and our are BenefitsPlace financial strong and the improving We are margin successful ramp efforts opportunity pivot. expanding These financial performance. results, platform

also our revenue XXXX performance BenefitsPlace was a BenefitsPlace catalyst with solid growth. rate. and XX% contributed for growth QX a our both to carrier

growth financial to of XXXX Our adjusted to will $X lead and approximately QX growth XXXX bookings expansion and believe EBITDA improvement. million, contributed XXXX continued revenue we meaningful

clear a proud This In what of path growth. understanding our profitable accomplished. am has revenue to Benefitfocus team of has conclusion, I

our tremendously are future. We about optimistic

transform deliver can We benefits are we look to forward in the XXXX. we industry. to confident And the that opportunity

turn I to Now to would call Steve. like the over

Stephen Swad

Thank you, since high-level provide and I observations for business Then and providing last to Ray. full by year activities financial financial want we results start discuss the XXXX. about guidance I'll XXXX some spoke. QX

observations. my with Starting

First, quote-to-pay offering we made the into significant progress selling carrier our market.

principally as a to through long-lasting. to and call, As more products is as proceed deals carriers, pleased are I the be because I'm progress we and last mentioned tend strategic our our for result, with relationships our of this critical us during operations channel XXXX. medical to expect these close

is net exposed We X XX.X this base Second, million adding to products performed lives. with lives. buyer exposing a of and we to currently million new about of see BenefitsPlace, which our lot our runway existing by eligible well over benefit of offering

strong. model Third, our remains business

employers, engagement BenefitsPlace benefit especially carriers going business to us this have well is exposure medical from as revenue I the and voluntary run, multidimensional long over We model believe sources and serve increases. from suppliers.

was This last double-digit was disclosed turn this time in Platform was to an our first of quarter quarter revenue, $XX.X revenue BenefitsPlace, represents our of revenue by was which streams. compared let's XX% million, each the up the for to of to Now XXXX XX% Total quarter for driven increase the the and from quarter. year. compared revenue in fourth results. growth

we our broker year. of the $X from headwind at The a in standpoint, on XXXX of prior highlighted Mercer contract and revised full near-term call, start XXXX, for to QX approximately relationships revenue we've our created million million As influential contributed with a renegotiated contract. $X earnings but strategically the stronger the community,

results in for solid revenue deliver million continued year XXXX. approximately quarter $X of to million the the $XX full contributed and and assets nearly Connecture-related

and both this for accounted services revenue revenue contribution. of approximately full For half professional the quarter year,

pleased from to acquired with performance continue assets be of We the the Connecture.

growth in grew Excluding resulting On reflect XX%. $XX.X total and gross the $XX.X QX negative professional growth subscription profit high compared $X.X software revenue QX XX% revenue. margin was profit single-digit XX% the and Connecture services to resulting total impacts gross of gross in representing contributions Mercer, a million, was and 'XX gross GAAP from and basis, XX%. of -- of million, or profit Professional million in services platform

a negative of million percentage profit combination The staffing, services million, open margin Professional profit XX%. a non-GAAP year-over-year profit of million, of XX%. resulting gross representing revenue in On decline data increased gross $X in as in $XX.X the revenue. investment of basis, was gross third-party and $XX.X total margin in was in gross reduction high-margin reflects software a investment Mercer enrollment or

adjusted was $XX compares our guidance to million. QX EBITDA This EBITDA in of QX million $XX.X exceeded XXXX. favorably and

management by was in EBITDA adjusted Our positively the expense tighter impacted quarter.

that million, XX% expect our our XXXX. to continue was continue year, to EBITDA EBITDA to managing We an will our cost adjusted rigorously $XX compared the adjusted increase XXXX in of plan and improve. For

profit Operating share operating QX million $X.X loss XXXX. net favorably and of This net per the compares $X.XX and to share $X.X per $X.XX. of loss in loss was million, was

flexibility operations and $X.X terms. and line quarter flow, provided We of cash and in let's that this to our Free ended approximately at with or the $XX and attractive was cash QX the as move we used million. with $XXX in negotiating million liquidity a to we I'm plus cash cash a purchases credit Also, equivalents cash expecting facility balance final million. stages are new in flow. non-GAAP additional provide property sheet measure Now equipment, the expectations. in of for facility define and of

Moving to guidance.

$XX and outlook our the to including backlog highlighted, larger our several reflects ARR Ray from transactions, in XXXX a from million and adoption XXXX; new percentage XXXX and will revenue; QX revenue on-premise Mercer and in reduction declining in Connecture $XX planned expected growth As in derived combination of continued factors be a approximately BenefitsPlace; benefit strong which million customers. to XXXX greater of

helps to positive color give consumers our regulations on make are uniquely regarding Let for me care customers as that Overall, also the positioned view change, as support. platform help, Benefitfocus needed we we asked need as and with changes political our a frequently this and relevant landscape more laws questions tools. in complex topic. data health we get When provide easy-to-use choices

assess to continue the potential closely the will on We environment and impact monitor macro our business.

of quarter a XXXX, $X.X of and to EBITDA adjusted targeting non-GAAP million. total first of $X.X margin the $XX.X gross are revenue between million $XX.X For XX%; and million we approximately million;

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

For the $XXX $XX are year $XX XXXX, between million targeting million full $XXX EBITDA and of million. to and revenue we adjusted total million

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

XXXX. revenue are For expecting of modeling purposes, those trends to resemble we total

approved that growth $XX our levels. our ability that up execute trading of belief reflects confidence share of greater common company is This addition, today, announced price stock. we Directors these Board current program repurchase our much and in of than at million the to the for In the our has a value our intrinsic to successfully strategy,

a lives In we providing year. closing, we platform. through before with XXXX progress with and lives as engagement plan move on the entering updates to further to than increase our and forward on you are ever the look I more

With we'll up that, it for questions. open

Operator

Instructions]. [Operator

line comes James. Peterson question Raymond of with first Our from Brian the

Brian Peterson

some XXXX. the of appreciate on maybe or So color guidance. driving moving for just outlook through could what's out the some XXXX assumptions you wanted walk start on Steve, to the But there. the of parts I

Raymond August

Yes. We appreciate Thanks, Brian. it.

that As customers. about first and for look really excited we're drivers we and the think There's we Benefitfocus at, XXXX, is about the future X BenefitsPlace. our really main

premium purchased million saw you a $XXX As our went customers up the million. amount from $XXX from BenefitsPlace that perspective, to of

XX above went eligible $XX up benefit our we to to platform. BenefitsPlace And on folks above of plenty million. million-plus from more runway solutions Our we revenue the sell $XX where million have could net

So BenefitsPlace XXXX revenue. is our a key of driver

the carrier seeing acquired driver for We're that. key the around in married solutions, of really our a QX Connecture. carrier only Second since last innovative brought we carrier-based in it's for X demand year, quote-to-pay next-generation that up Last lives. the product solution. last had great we our of is And their sign the We with us Benefitfocus for assets earnings market that We're lot to solution. call, of year. carriers told up like product different the market

our going a year, in So half the that's to play a big growth in pipeline. revenue we have very, strong role the and of very back

our from The third year XXx to brokers about premier the brokers We've the a broker working in of marketplace. tailwind number Benefitfocus that Benefitfocus activities key market. the represent lever who And increased for the in are over community. us with employer a by to brokers these brokers see out XXX ago we is in as

to our strong carriers. going we the lives the both So drivers we're add engagement some medical expansion And broker to from are BenefitsPlace. really community, over with those And net we're benefit eligible the going year. lives have XX seeing of big into our to that this forward and looking million

Stephen Swad

I'd add we it then operating took feel plan and that, to And we that where develop plan about just Brian, guidance. landed. good to and I that that risk-adjusted

Brian Peterson

forward? The comments. deals, how three expectations and help going about just be for Ray, carrier large of what should pipeline any drove on those or potential And X-figure maybe follow-up some the some those a thinking to Understood. carrier transactions we

Raymond August

Yes.

bill Carriers our us ways. that through that employers competitively very we focused the From As the solution And receive we and product. multiple in benefits. people quote is the a the product it product have perspective, to to We it carrier individuals. really that do carrier like marketplace. to in also it's do us. a help we unique a look connecting connect product, both And through on Benefitfocus And transformation, product, platform of carriers. because we're allows at a and business for cash a it's enroll against distinctive only a

of it's just a of out Teachers a existing customers see since like Benefitfocus, -- Premera, to both different we've in Optima that amount and new a mix added been three Benefitfocus, you companies of Associates. National customer, short time carriers the great So

carriers is that ability the one things very so to to the of the by saying is very a the which the they new they their see innovative offering And it's products. through responding to are compel not see of And it's And this offer having pay, will is that end as be it, BenefitsPlace. about adoption but BenefitsPlace quote product. really compelling only to to that customers XXXX, more at a customers us voluntary something carriers, the way their end-to-end

for it us these our It's because with to also us match allows suppliers good carriers. BenefitsPlace up

real that a driver So for as we're these seeing carriers.

is very rest for the strong of So pipeline the year.

to We expect the through drive rest continue have to of closures we XXXX. as

Brian Peterson

maybe one just to I million be include to good mentioned that the That's that being Steve, the not prior on to And quick lives customers know -- include I you X want the hear. BenefitsPlace. were exposed benefit or clear. Does clarification. Benefitstore? just

Stephen Swad

is That to all exposed lives BenefitsPlace.

so point is I clarification, Brian, it lives. And in an goes into those their for get as benefits and about grocery it a the voluntary store, aisle cart, include grocery the I in there's the aisle, store. way pull life there down benefits. compensated a and just we And and think they would And voluntary BenefitsPlace are And of aisle. the a benefits think those of

them. I a think insurance don't it store front put I that as of voluntary with So about place. as engaging activity, products just consumer a think about and in it we

of think it. I way the that's So

Operator

the Jaffray. Sean next with question Piper Our of comes Wieland line from

Sean Wieland

is transactions. larger but sales or sales said from to be -- derived some improving that more seeing cycle declining also you ARR cycle going So you're

increasing isn't sales is me size that deal cycle see very we often. dots. those Help and So something connect decreasing

Raymond August

by carriers operational We're it, really tactical. Yes. often we were as and We for was we a just tactical think with what's but about the really automation for marketplace. companies. -- in it system -- efficiency Thanks, insurance pleased the very important operational really BenefitsPlace. Sean. activity was had around the was and It's enrollment efficiency. And is, system billing purchased before, purchased an companies, somewhat always the It with that a about solution happened

the from quotes quoting end-to-end insurance. activity. this solution shift drives Now strategic has revenue tactical the efficiency by solution, solution, for where drives create to people looking being they see, a this to that a we going providing And for their all in solution the for that have to drive having this is carriers, companies. key because It increased they're quote-to-pay quoting helped more

the talked for their the the companies hit from really where need to that's coming CRO, about shift year. And the to numbers we COO

they it's that hey, have several once Revenue a of So CEO you're I And added we a shift we in deals saw to the over months. Chief company, solution need this talking the to drive incremental typically what the this that Officer revenue. last these about, that's

Sean Wieland

helpful. cash on thoughts flow, for guidance free XXXX? any flow cash That's have do And you

Stephen Swad

Yes, million. Sean, this is with Steve. $XX We ended consumed we -- XXXX

We sum million are over and consumption, kind those investments. somewhere well X million. the flow in And reduction a to of by working in cash EBITDA between driven $XX $XX our XXXX in expecting that significant free of an as increase in two improvement result as things: capital

Sean Wieland

one a expired of that this February line And million? credit is one, in small the $XX is for replacing just Okay. this renewal, the --

Stephen Swad

didn't million a was is expired. it. There the We the It's pay sheet. replacement efforts balance primary $XX accordion I with is same replaced And it associated That the But it we want -- fees with to $XXX with a unused expand principally correct. have the our line. comfortable because is to bank. that. it. on to line best million I is the

Operator

line next Jamie question Wells Stockton Fargo. Our of comes from with the

Jamie Stockton

would a guess basis? Mercer we another the about kind stable? this and in-sourcing it's How start going partner, away is go-forward an entity to great. go first I maybe that should -- could point? mean be If of that maybe be using or you on left. I some going one, just that's think that's is Or that on the at is business that there, to

Raymond August

our good have -- all brokers and of single a our The Jamie, working drivers, point of our of part key with and next Yes. revenue really to that relationships The like we like the parts them, with we're year any are now robust and into a broker this to relationship And broker community, they're a for growth broker. source is Mercer them improve. our continue with to with -- closely could frankly, relationship from just revenue have other would future, where part come of hope working grow a community. that robust have we them, we

seeing the of that they're of unique So of to part a have both to our hopefully transitioned in provides. the see continue work community. overall we're now that our forward. relationship automation lot really solution BenefitsPlace a They drive that value go going from we one-off and because to it we're up as to And

Jamie Stockton

-- just Okay. full year then you've a maybe And given us a number. QX number That's and great.

I still QX the that that last of some 'XX. headwind happened didn't has think year restructuring QX impact from

the a X X%, in And the last that's that the full there's it rest points that's getting then down it or year and average growth if maybe the like to of maybe something quarter even is Connecture business year, for slightly like in rate organic flat I headwind that. that. X% QX. growth from into QX seems take contribution or or something like maybe account of But So X versus

expect some about to it of live Is throughout in QX? that Steve's QX-centric that more of to an think, year? the inflection is smooth Or that's you inflection? big kind inflection, is likely setup comment go this a deals maybe relatively where, think that be I a we As

Stephen Swad

it continue, view going that. mention why Mercer's I that's in that. that And and a was something Mercer did XX going numbers. let fact, guided are to or in course, explicitly lot update and I we QX, I'm strengthen. days Kind that to in called Yes. out And like is like headwinds my of the guidance hold. then There of I'll,

see, you'll that like million. at the $XX to you $XX it you so million million, if I million going $XX and $XX data was, look And look think, from back, to when Mercer is

can way it. the it out decline that called you did QX. be so the this that's of more at there's an going I what see comment for point, you're And But And to Mercer. I in might not acceleration And part I'm really much in why referencing.

reference a kind just of transparent be about schedule order to supplemental point, a we this, And in that put this on website out. our lay helps

you look want to so And at that. might

Operator

of Our with next question Mark line comes from Murphy the JPMorgan.

Matthew Coss

Matt is the if included risk and in on weeks? Steve, recent and adjustments of they're related any explain us Can adjustments behalf few over little you a bit your Coss be mentioned risk what specific Murphy. the This guidance. might to you Mark to you days that events some

Stephen Swad

I would takes. describe them more as business puts and

some some are So good and could that things when and XX-month great a other plan there ways. then you over things a period, look at some things go business

more referencing over was I adjustment of XX the months. a what risk so And plan was next business the

Matthew Coss

Okay.

nothing factored that? kind that's recently is of cropped So into up

Stephen Swad

That's correct.

Matthew Coss

chose mentioned And another to it. you was platform cycle its Got then, And Okay. what workforce. the like replace solution? service Did large that? for Ray, a this employer sales your

Raymond August

in sources the a from year. depends a vendors, of solution. speak I'll be over it benefit on lot the really we're our the a is the to size whether sales ERP But months for more custom the multiple seeing and solutions it Yes. And once solutions, X about categorically situation. that we the then replace, of Typically, cycle, on depending the size, company. a still company while, anywhere and specific

next is the the biggest of happen the -- we'll side As of of for a season quickly. deals are you early and matter the will weeks is will those know, cycles see. pretty selling through QX. the typically here starting sales what months And in employer segment our couple turn And

of carrier that's longer, and the typically all at importance. strategic deals looking simply of -- because the medical that medical carrier carrier. the for strategic executives the For has are deals, it's more deal, much and it's the It

So a sales takes cycle. little it bit longer

Matthew Coss

Got it.

outside QX think voluntary what finally, you QX, cycle? benefits consumption Or enrollment sort And benefit typical could of encouraging Okay. then worth you steps it take? the is do of

Raymond August

Yes. from we're premium We're million that going with engage throughout really pleased see intelligence going with with the artificial of to selected with and premium consumers million continue to is engage to consumption way starting the we're with that engine, BenefitSAIGE. it $XXX $XXX to the really we've the BenefitsPlace of selected. consumers year. benefit seen The voluntary happen And our

individual. And a And this sent massive on about amount the is we event platform, with out new every demographic products. BenefitSAIGE, data, that we data wealth state them child XX, such a act data, turning really our have then take message which health of individual. baby, to it's when specific And happens a inciting as is to and provide

to be intelligence there. need very, to people really believe, benefits drive technology a reach to they it, to purchase will Data artificial every two those fundamental going are moving XX-week in to from and using period. very -- when out so two artificial us the period -- week intelligence So a we and

Operator

[Operator Instructions].

Nandan with Guggenheim Amladi comes of line from next Our the Partners. question

Nandan Amladi

produced XXXX? for XXXX? a XX in many lives. the your expectation PEPM these How on what's million question of So And

Stephen Swad

just you repeat more Could one time? that

Nandan Amladi

Yes.

expectation ending You what's have in And how revenue XX for month year of million lives revenue fiscal subscription revenue generate XXXX? produced will 'XX. employee per many now How your that in those XXXX? per -- many type lives

Stephen Swad

Yes.

then a a you PEPM, you have which And booked into to signed out lives and As those lives, as revenue lives we those booked first suggest. contract. what there's those. we are We journey start -- services then represent do they move know, call break where lives not professional with

do deals, period on that's know, time. to As PEPM. at it the you lives my takes those out the list. lives the generating longer this I longer to-do the will larger the not say we break But those and get implementation

then revenue to as relates hit preparing deals, of to QX then those hit XXXX. the And said to -- some full in guidance it hit I when in revenue of expect that QX and but QX some we deals to XXXX we were that

idea go revenue. so from And time contract to of gives you the takes to that it an

Nandan Amladi

of have Right. And the a were faster question. employer When and disclosing sort become separately XXXX, revenue broader another until majority point. lot employer you revenue was carrier that at your growing versus of

talk assets quote-to-pay the can and and the don't growth solution, separately those the employer dynamics and disclose carrier you Given the of now size Connecture since anymore? you about new

Raymond August

lives lives actually the in about to think we connect XX%. we And and our when by last eligible increased our Nandan, is platform, to about think really our year, people we Yes. Benefitfocus, role benefit on net benefits.

number And So lives having somebody that. about all it, think we all voluntary medical equally our purchasing a products through about look joined and plan because it's enrolling around then benefits of at extremely you large family. if lives

So then about on we about think platform, the same. think them do lives get lives do about the separately. more our even onto we how platform, how them. We engage once get We and we them don't think those we

Benefitfocus from for So medical then solution from helps plans and ultimately, And more that. and plans, value their them they're ultimately, then our receives family that future. revenue getting purchasing the the voluntary

Nandan Amladi

products consumers in the are in both BenefitsPlace? seeing same So they -- areas equally are types of

Raymond August

Yes.

employer to of employers carriers that we'll seeing XXXX on million our to we're at products and to all purchased BenefitsPlace have In in -- BenefitsPlace, look the employees If of XXXX, their see BenefitsPlace revenue as are offering in be about $XX over million excuse in the premium are several begin well. revenue platform, me, of XXXX, the we emerge that that the who will today, those from $XXX you revenue BenefitsPlace all segment. side

and So we'll the as of formerly those revenue what known see both was the employer segment, XXXX. from both segment in BenefitsPlace carrier

Operator

the like end would over President Ray to August, turn the question-and-answer and back CEO. session. reached call to I Mr. have And our We of

Raymond August

Yes.

to And to for the and forward, today. the as I'd So questions Benefitfocus we is remainder go the quarter everybody year. here you of progress your thank for to you. like Thank this look forward we that updating both making

Operator

call. conference today's concludes This

and disconnect for participation, a at may lines day. Thank time. You now have you your this your wonderful

Benefitfocus (BNFT) 3 Mar 202019 Q4 Earnings call transcript