BNFT - Earnings call transcript Q2 2020

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Operator

Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to Benefitfocus Q2 2020 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, this conference is being recorded. the to turn Leahy. host, now will conference your over Patti I you. Thank

You may begin.

Patti Leahy

Good to and XXXX you, afternoon, Thank operator. welcome earnings Benefitfocus's call. quarter second

Executive call Chief Joining and prepared Steve remarks, today are we'll August, questions. some and me open then the Ray will provide Steve for Officer. Financial Chief Swad, and Ray up and President Officer;

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

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

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

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

Raymond August

associates, investors good want managing appreciate to joining everyone. extending I analysts. valued partners, customers, afternoon, our two There well you factors and to you, thank our is I'll times. the well with leave hope these by unusual key today. through wishes We our and everyone of including each Patti, Well, are and start call, you stakeholders,

First, strengthened financial foundation. we have dramatically our

executing are actions We we with the the in well last response shared against quarter cost pandemic. you to

execution and our decisive Our have and profitability, us flow strong cash enhance actions generate to positioned expand margins. free

helps to growth. We flexibility while have extended us our which us recession, also us added for key This substantial providing leads takeaway. second future potential for invest liquidity, an any weather to

in has our We the been our value continue lives to invest proposition. business never with improve to benefits, more or necessary. believe important and more strengthen mission, We

high-impact by more had in our such health key enhanced competitive future quarter, value. these I'll proposition. on investment in these as in execution these We liquidity, our and business together, quarter, enhance more growth Tying This the we We built are continued the the the demonstrating areas, detail. differentiation. team. executing create wins helping shareholder is efficient. to our performance strong healthcare the and costs our strong in significant All factors and to in accelerate plans of right be foundation enabling reduce power several value have our discuss

quarter, impact potential our the the navigate strengthening of During focused the we to foundation financial on pandemic.

last unemployment the led you levels for historic to quarter, macroeconomic the our year. revise of As we revenue environment us shared and forecast with

so expense that cash steps We have through improve We're taken swift margin expansion. efficiency automation doing and and flow. drives to operational reductions profitability aggressive and our proactive and gross

now of the $XX Napier, BuildGroup. investment BuildGroup, and serves has director. a Board of position lead the from through as we million since announced the our Lanham member greatly been He XXXX. CEO our quarter, cash During Founder enhanced independent The our previously of Directors

fortunate represents invest pandemic to business and opportunity of liquidity than we have strong and partners. are emerge positioned investment Their business. our confidence have stronger, from vote and ourselves strengthens and and We more before. grow believe our future investors while more efficient Lanham a to providing We as team in his to profitable our strategy the

our unthinkable months proud As context implementations delivering are Steve Customer will financial am all almost in support, than ago. the results, that onboarding team performance well. I discuss in was for of better challenging area. detail, environment quarter these just second our in X particularly every was extremely and working expected a of

high is their new well engagement maintain Because thank necessary. long Our levels associates our of world and positioned of our remotely have of results. challenge work. and of want of one Benefitfocus serve as support to them, as for to productivity customers They to I for risen the them another.

renew During and better key accelerated One integrate of margins. experience the customers. quarter, automation our we implement, area to to our drive takes is efforts improve a and reducing the it customer time automation

am to with very date. progress I is there do, pleased While more our to

which anticipated has record longer than the times. better sequentially in X% is close this turn were than during of up financial eligible XXXX, compared our our better said, expected flat and given Net level nation's lives of of environment created additional the also Importantly, to for customers HR was benefit which quarter. health than typical is quarter stress That unemployment. the administrators, second causing

our continued second takeaway, Turning investment our in to the business. key

During value differentiation. extended competitive the enhanced product quarter, and our proposition, our we strengthened features key

helps added type actions Health that claims these administrator's difficult This massive and transparency It HR the data medical a a This differentiated gives be quarter, upgrade cost with data. set It integrated solution. assets, workflow. easy-to-use relative use during employers of to them for administrators employers should improve their of our mitigation For helps to our identify example, Insights made innovation right driving Today, significant and products we strategies industry benchmarks Health AI-enabled ease medical costs. understand within transparency tool. for employees. are their It administrators, leverages spend their medical this existing and our Insights claims an provides times. up provides HR a including particularly of welcome better which

employer cost can outcomes. in benchmark saves our and claimants, chronic ensuring industry drivers. can includes money employers implements solutions are and healthcare to care identify key also potential Health their view Insights an improve plans employees' insights, deductible solution, significantly conditions. employers see in of we prescriptions, high also cost This Compared high This participation preventive when and employees need. while averages, these benefit With that covered use, emergency and times health products. health higher room supplemental self-funded to They

expected on existing better understand them Insight planned This complete health and their also impact. Our helps better employees choices high benefit people gives products usage. results transparency Health cost of personal choosing plans coverage also financial the reduce number premiums. their deductible more and to their and for in based historical monthly It

to large a value employer add deals close in proposition health us a and compelling enabled number the plan new quarter. second of Our

We strengthening continue also and such our Mercer relationship brokers premier as Aon. with

closely and partnership costs, our of enhanced couple health By them We recently Working voluntary to retention. communication able of top added win first win options, a proposition. have one employer share reduce employers. a better consulting value and serve examples the companies. lower brokerage with complexity, power greater partnership offering U.S. illustrate the employee to plan and recent to team, large Aon's our Aon, our employer of highest benefits with of Aon a its choice value proposition now At higher I'll from translates our better level, customer. a employer the is

of is Atlanta This the the association One with be win GIOA Chick-fil-A Benefits nationwide will employer highlights Trust. large benefits operators. Mercer our majority of for included representing franchise health a a joint that for

consultative eligibility benefits by our was own choose platform operators. automates and and catalog. workers this dual to benefits employment their benefit contract, Our multiple access to Notably, on the client our specifically a system process Chick-fil-A's and the our complex approach administration, of winning from rollout, voluntary key full educating part-time how

of it lives these affordable be mission improve benefits. will of the realizing workers, first can voluntary many our is great to access with time This they example a benefits. For

and voluntary you've able members know It's If with you to a team high-quality visit affordable benefits. compelling benefits their now their are supplement a of Chick-fil-A, gratifying to those medical firsthand service. mix operators experienced

contributes higher that which institutions costs. of suggests happy report all correlates data also voluntary employer to Our I retention, key University am the to that benefits within offering lower to employee XXX,XXX System live and now System the reaping are employees represents currently now retirees are Texas enrollment UT and are who our implementation system. going state-of-the-art open enrollment. of This through benefits

all work of with reliable employees. user face uncertainty are journey, to communications in This communications. today's experience improving their members their words we of deliver in their is for We director benefits, is executive member phenomenal That the remote the the ongoing and increasingly robust our due be important and to true and environment benefits kind pandemic. of especially and proud

efficiencies about for through driving health these value enabling member broker plans; our capabilities. improving to lower enhancing is costs, quote-to-pay operational digital our and and end-to-end Moving transformation proposition customers engagement,

We their grow controlling solution have pipeline revenue health in while asset, helps our them a traction continue to end-to-end as as good view asset plans an our that costs. strategic

states platform distribution and technologies health win share grow enroll Benefitplace solution will our employer the the single, processes health Medica Medica enrollment bill plans to and be health their It coverage to quote-to-pay plan, consolidate will one for Other to line members. product or illustrates our and Midwest. necessary Medica, systems recent integration the a state markets groups market looking The Our solutions. their X engagement today leveraged new with to of business. for With by satisfaction in platform, cohesive, workflow. plans plan, Medica's health of offering. on lack complete improve modernize of within for is group brokers, and will the multibillion-dollar also value area the able a regardless and

duplicate customers. and confusion among their the removes solution Our processes

While the inefficiencies, operational relationship initial expanding. improve Medica was our is to opportunity with

Medica markets solution. fully quote-to-pay helping new a grow are digital, We with modern, end-to-end into

Medica's bring and to the to our work begin the we platform to in members, quarter. fourth revenue expect As we contribution employers brokers,

that closed As like in an report QX, to we XXX% and most managed virtually. initiated, aside, closed was I'd of the this like opportunities

succeeding grow succeed. our are We by and customers helping and growing

and As closing, profitability. the apart. solution members improving increase a and focused of is our in our strong value health plans way, on end-to-end increasing more operational sets a accelerate transformation, In their remain us efficiencies differentiator platform with digital meaningful that engage we

growth. resources, investing to to advantage are exit We long-term we long-term We that the well to pandemic taking are current the our stronger and macro leadership financials we in believe continuing outlook more have to take that, drive near steps business drive through technical we market and the Steve in and and better right And positioned environment positioned. you the the extremely through and confident shareholder now value. With are detail. will manage

Stephen Swad

our several flow. net lost had higher health environment, QX cover updated appears activities, close eligible virtual to you are be of base than adjusted going busy with guidance open that in EBITDA a past as Ray then this sense are of From Thank before them start during our financial the sharing to key we how taking opportunity, and cash hard deals. working we and matter resulting QX we of the an begins. for the season This to a enrollment and normal wins mentioned, by than highlights, those pandemic. also you, seeing perspective, guidance. Ray. unemployment and from customer benefit the deals and close performed timing free to business overall the bring lives, I'm it's the quarter rather longer than expected current revenue, were In than full but better high-level in year impact expected, I'll selling

had proceeding While their weaker remains and there health work we they would that one seeing contained. most expectations and as disruption put move pressure SMB it the forward, hope from planned, limited we to are plan on a customer are be We had due some hold implementation market. implementations as

are our business my than So pleased that overall, better storm this I'm perspective, from weathering the point at originally pandemic estimated. quite customers and

the second quarter. to Turning

million, due This Our higher results on primarily $XX to our million. was exceeded than the outperformance better lives to for my revenue expected platform. our than Total million quarter $XX expectations. was of $XX.X guidance

being XXXX, of Subscription revenue. exceeded services planned. X%, total stronger by due and quarter the than revenue professional mainly was of health compared down lower to financial subscription our expectations this However, second to customers the driven our quarter our revenue

services focusing non-GAAP million, representing gross profit basis, GAAP work. $XX.X health this of This due While on down than revenue, voluntary points XX.X%, pandemic. last margin plan XX.X%. XX.X% to On year, also benefits, $XX.X a was compared $XX.X to change in from of represents of decline expected last which XX% services came XX% is was from our year, Professional year. On decline, margin. against legacy a representing due professional XXX which to a shift higher-margin primarily basis gross fewer in a to is was about same gross QX the Most a a of the of last revenue the Platform our primarily last On expected the to due million, profit non-GAAP the result million, which a margin better as is to gross of for This X% with year. to backdrop gross at margin was it requests was agreement same down period lower runoff compared was basis, million. for and software period year-over-year high-margin revenue. Mercer software gross compared $X.X QX of grew Mercer. expected, this to XXXX was XX.X% QX reduced basis, performance down

XXXX will gross management on automation a quarter, our was than the take effect. the and better efforts and XX to expect software margin year. continue gross progress as impact full services points XX.X% Professional we than actions XX non-GAAP QX of We prior for through and better improve points cost basis margin

get this area. with customers progress are to compensated our and our pleased We with for fairly are working in our services

forward, and guidance was of EBITDA expect an improve gradual the exceeded continued margin as million, margin adjusted processes end to breakeven our $X.X EBITDA XXXX. we gross roughly This high representing In favorably automation compares QX hold. expansion take in efforts Going XX%. and we of QX, our

we of took in -- by Our adjusted April. and measures late cost impact higher-than-expected EBITDA reduction impacted was late revenue the positively

costs to per net of $X.X per QX operating We operating favorably was loss expect loss GAAP million sales million, in QX reverse the bookings $X.XX compares XXXX. share we favorability shifted excludes GAAP in loss from some GAAP EBITDA QX net incur of for million $X.X Adjusted to and that restructuring as $X.X of loss $X.XX. to QX. was share and charges. This of GAAP

and cash ended to the with move quarter $XXX.X let's sheet approximately a the million. balance Now, strong cash balance flow. We of

as the balance is which last quarter cash BuildGroup's a early Our result up in June. closed investment, from substantially $XX million of

and million that off quarter, us. during of credit In paid addition, $XX the our credit now outstanding line available $XX the of the was on we line to have million full

Our of our our provides representing Early opportunistic us shares it economic in buffer we continue cost stock remains uncertainty, more X.X under and enhanced at investments. slightly than allocation $X.XX program. make average and decisions of helps $X.XX and per Approximately average to for Since approximately liquidity longer have purchased XX,XXX at share. we price This added of program $X.X prudent liquidity the weather if allows lasts than to price disciplined expected. purchased million quarter, share. a million capital $XXX,XXX, repurchase shares us available an share an year, repurchase share common currently even approximately of $XX.X our roughly repurchase initiating a per million last

purchases flow we $X.X generated as We that flow. cash define of flow cash million levels measure for used property this excluding restructuring free costs. of provided in the to is Free the to in of a or less strong expect deliver of With on non-GAAP and QX. performance, year. free operations, Moving flow equipment cash cash free we sustained positive and cash remainder

to Turning guidance. QX

be to $X to adjusted XXXX QX million are of revenue targeting $X EBITDA million. in million and $XX to million of range $XX We total the

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

our our outlook year revenue to million million to $XXX narrow $XXX the to the performance allows million XXXX to of in quarter ahead from between million. full range $XXX us Looking and $XXX guidance, our

also increasing to million due cost We are margins, guidance our to reduction improved million million automation $XX million and actions $XX $XX EBITDA expected from to $XX efficiencies. to

revised million utilize QX between fund generate and also expected we flow strong cash We free between free and believe brighter collections. outlook guidance to will $XX a to reflects cash operations flow million $XX now million. and positive $XX are and We raising guidance. results our originally We This had on CapEx. $XX million our

In EBITDA and these cash with pleased impact are guidance we excludes charges. our uncertain times. the conclusion, flow free given operating Our of results, restructuring

delivering in to world the processes platform are business necessary our are and bring implementing homes. offerings We leaving customers digital of a our onto physically ever all new without their

substantial sheet, pandemic. on expectations ample currently generate and our acknowledge on with next level combined likely EBITDA of normal. current than the are benefit to revenue flow, the will us environment lower the cash growth is through because cause pressure a Our higher this only our balance levels but flexibility provide financial that moving slower businesses projections We forward will and liquidity of short-term at pace difficult not quarters visibility free makes few over

closely financial bookings, platform We and the over business the to profitably shareholder of macroeconomic company and the Thank we'll resources you. products, to we and scale have traction will technology, people, accordingly. data, Most increased continue recovery, monitor our grow importantly, you long-term. the value deliver update timing on and our

I'll the Now it turn for over to operator questions.

Operator

Instructions] Raymond from Alex Our with question Sklar first [Operator is James.

Alex Sklar

selling your the on a year? and bit examples gave remarks. more of of just But are could season? back little setting year next couple on you you the based the up color flat in growth commentary you give in in the a Ray, results environment, this of lives And that the for into prepared how QX half

Raymond August

Alex. Thanks, Appreciate sure. it. Yes,

that people of economy the to the to we we it through at on our and going were get action that it make swift -- to have pay the that use paid the that we sure we to what As people impact in do and fact company. the right driving take looked and our to basically of we became number had number was platform obvious activities of and platform, COVID us our very the aggressive

was one that As had very entered of we our that into foundation this important things for was we whole solid that, very did season. business as very, the a we

what our entered So of became as responding from the customers. really benefit, value employees, very mission market and now families ever plans if selling And that our more our hearing we that mission we're can it looking important well back extremely is QX this are their their very, look with value of lives is ability are for to looking communicate apparent the with and improving healthcare. demystify And great our couple for They're you marketplace. save saw into motivated examples the we serve, strong. is to our season, on than I a the Companies proposition looking at overall very so keep employees. health to is to that for the proposition. And employers pointed looking the their wins market the script to and employees, in the retention. they're employees those the where money, motivated, complexities benefits their customer increase we of about to offer they really ability in some They're employees to overall

our is where favorites had is the Chick-fil-A and allowing my than of the solution in One get buy benefits opportunity, they people ever to past. benefits more

making So Chick-fil-A it's and to the both an employees at impact really Chick-fil-A.

transaction they're to That's on signing health just drive serving really perspective, in our many operational We plan quarters. health fourth plans is platform of plan that. health announced Medica. they're doing the focused the us our effectiveness, as telling On and looking members, efficiency, organizational major their are and

interested health plans very value needed much something our very they're that really very, proposition are the our and seeing as in. So solution,

ability we unprecedented feathered investment, has our play season, been BuildGroup a BuildGroup seeing We're expanded footing. the at uncertain our balance company So us said, We've as and But -- the sheet that's selling margins. look really selling on times. time. financial with with we an where offense the these never season stronger during are with exited that really we the to giving in the

us we know. we look when don't visibility. do We None of don't what at overall We have limited the really economy. know

HR employees, buyers company. doing focused our is The their they serving are leading this health be are all what is longer distracted. are on which on of is that buyers whether for members who to and area, working And solution, on just as a administrators us or very their working to who reacted servicing cycles plans sales important Our of they them.

an company, could as we So overall what controlling control. really we're

expansion. us We gross for are high having flow, a strong positive in very services the having margin And like puts things our free cash professional margin position. a EBITDA very

a staying optimistic going we're our the really to We're innovation continuing because the So on we to to EBITDA forward, well that both We're term, our accelerate about positioned keeping invest we'll overall cautiously believe close in growth. very that expanded We're the revenue opportunity. with close near very, market. customers. in eye be our

Alex Sklar

not will getting heard of progression other And the Thanks. say those any this think voluntary past months Okay, going a this, or signed Medica, kind X offering one, you plan us be that be offering but or this great. you've can expected -- just in deals of health lives the -- help parts to season? I'm X And couple plans on then, I plans health this to of the Medica -- the up Are the understand Ray selling also including you Steve, Benefitplace of benefits. now onto so platform? your I

Raymond August

run really of us is a going health Yes. on four the in chosen that for with We're health and as We're I as over what's marketplace, last really with plans. the said, very company. a Benefitfocus uniquely plans pleased terrific quarters, have really positioned which proud four

providing revenue really with by -- for tremendous states, see serve members, them. to As that as a about system compelled as is the they different in our proposition. more healthcare care Medica, can see do are are grow nine to opportunity And rising, in they the an case growth overall our and really have system this a their thinking They enhance really costs how efficiency are of them. of operational creating and do as plans healthcare less, their taking health health amount they're plans they they as

our their and plans proposition we're that allows capability added strong, and four of you last many our plans health that very, plans to to that well. these benefits is very the we as seeing that, them mentioned, health for over The health offering offer So are members, voluntary all implementation hopefully, on they paused the exception. a that one -- about term are their every that working extremely But health four implementations great, for on with we It's single some quarters, difficulties. for and the opportunity. noted the plan short is track company as and solution value implementation going our remain optimistic Steve company

Stephen Swad

you is should -- see And Yes. those this Steve.

You should in see live QX. going those start

Operator

Our Sean comes with Piper from next question Wieland Jaffray.

Sean Wieland

little dig the on to lengthening wanted maybe cycle. of impact Just the in more a bit of the sales

that you some quantitative could that? measures around sales there's where into maybe these lose a are the seeing benefit the cycle? cycles delaying next this you year open enrollment for some deal to And of be If us risk possibly you give

Stephen Swad

context Sean, we of are it this the within is modeled. Steve. of seeing I Yes, the say what was will we cycle. lengthening a

comments, something in-year moved were the they're not out of And one in-year as other we to I compared closed. number instances in and it seeing my then not didn't And look -- quarter our to -- we impacted. mostly in it's slippage, be into estimated compared the a what normal are revenue comments see of losses. where to they mentioned You wasn't COVID. more My longer, impact revenue cycle,

of closures it I'll a I and, are we say to are seeing Time deals actually August. friend. this time bit between longer. our so, will question -- deadline answer to motivate your normal say, now a because question I case, I better math let's cycles, still -- have will sense that. in. end explicitly is going relative In can't coming And is answer after the And that the your with our

Raymond August

one we of the this QX. things that deals pretty of process is out interesting that during Sean, was some had slipped

part airline, and kind one as lost airline. this they're an deal soon pretty thought important that pipeline, it we we off I thought again, our fact, to an we're back here. of coming them was looking wrote and see to lost we wouldn't we And them of now close In

So solution what that's us telling our that needed. really is is

regardless of company, healthcare. to financial looking the demystify the employees. a to need their complexity of situation, have They healthcare focus regardless with have have at on need of communicate need they They this to cost. So this their

system, And much and really so, we have the needed activity. to a we're pleased see

it us good about the feel makes So opportunities.

Sean Wieland

right quick Okay. Do one us you And signed on Medica a for signed then, can hear on And up that that that? book-to-pay the for of that? if the maybe capability. up it just I plans have number update

Stephen Swad

deeper product is up for benefits, to an some Medica there Steve. extend that This with that included product left account still upsell and voluntary signed is opportunities enrollment even our offer.

Operator

question next Our comes Coss from Matt with JPMorgan.

Matt Coss

when I quarter, you elements guess you're with still to that that the, the about was performance the of than What worried And you're what of guidance. year in better look being last sort better I about some QX guess, really then at us? than feared, thinking were as you elements surprised remain you the upside?

Stephen Swad

more through itself And shows which collections is I It were our The revenue. expectations. paying better Matt, than base us this shows of said, Steve. customer the customer as customers platform, in came also for on subscription itself base through -- lives was the expected. also above more health of that that

Our actually declined was DSO which not sequentially, expected.

anticipated. and And impacted if by was you that, so -- had of -- employees kind we than employee base double-click unemployment it's customers' our underneath their less

the that's guidance out looking to estimates then, the forward, as reflect year. core. made so And close we to adjustments like, our And our best we

time we low. the challenging last do still spoke. now these which full one our visibility quarter But have quarters belt and is we times are and As know, -- under belt was under our you up X from

a into half, the Benefit QX, as a The that big will that go topic one in we've -- I the the mind Marketplace, year. other And coming that thing voluntary we is Benefit is Catalog the got the be we and yes, other there's got still of voluntary second half, of of as back point. never kind a those but finish range year out data pandemic, half offering. Again, outcomes assumes the we've that a with top in Marketplace of are done Benefit

Operator

Instructions] David [Operator is Larsen Verity. next question with from Our

David Larsen

quarter. good you to solutions not? about bit manner? your a little you deploy Like, on-site on to or a ability be talk in a Congrats actually have remote your Can do

Raymond August

thanks No, that. Yes. for

XXX% UTS of really can is the solution at configure our In today have doesn't in it are -- physically today. members of the SaaS-based and in that cloud the members solution, capabilities footprint XXX,XXX are it. today. in our And company. have probably Our experiencing. now a really The solution they where you different communication the our about enjoy solution is the of no script, and the the are those that I all locations And our XXX,XXX that to and fact UTS customers phenomenal to using which be are customers present is communication who all advantage take their talked matter one things increase the don't members

implementations, So the the that deals done deals our say plans we many that now, also solution different that done are the in can be deployed we're all closed, remotely. And XXX% course, QX, those of health implementing were all I'd right conducted being remotely. virtually. and

device. a strong desktop from our utilizing device, at be virtual selling, it's any either or or So, virtual whether web browser solution a we're mobile extremely people implementations or

David Larsen

Any on give great. then, thoughts update the we unfavorable Mercer of Okay, do the then an contract? of the like actually number that impact the platform. And And the have in brokers joined you change lap there? usually when

Raymond August

go-to in about joint exact opportunity. That talked about embedded institutionalized Steve went the with our quarter, an as goals We but to we've our And to In They're that is we're opportunity add with brokers. brokers, brokers with, we really when flow. things relationship that same their the Mercer And comes and and we a to think really a was today. Atlanta in brokers first contract. it's We've number way. processes, continued we've it of our Yes. we -- those Chick-fil-A from talked the perspective, part one market this the business part over office. to are of seeing expanding important all our in Aon. it about of they're have embedded market. on of our a are an the business in unified part of Mercer I'll our really where But broker that pass handle

the all down of giving really And really focused customers We drive the making on, focused focused health sure of on healthcare on exactly rising sure using that's them. we're on we're and healthcare of the what cost and intelligence and the artificial employer analytics, we're employers side. for with are products cost very our the their their aligned to right employees brokers are with making XXX% so population that to

a go-to-market So and of we key strategy, our important see and as our our part implementation. them

Stephen Swad

is this And with Yes. Mercer. to respect Steve,

revenue Mercer XXXX million. XXXX, that toward you earlier pacing like roughly remind was was mentioned in In more to $XX million. an I call, Just $X

going seeing this precision And them XXXX's so that what's level on from I the us, is headwind headwind our that numbers anything be Mercer But I will estimates yet like that significant behind you you -- in of what not give year. on to XXXX. on we'll can't be can headwind. we're will because get tell be platform

Operator

question-and-answer turn the of the end back the August reached have remarks. closing call to we session. gentlemen, to would and for like I Ray Ladies

Raymond August

Well, hard to us business thank thank our will us next for to continue night. flow. to would strong has updating I generating and performance. also value. the to to Benefitfocus our And go long-term, over strong quarter. prolonged a team our solid all ability to to to it we grow gives driving to on work invest progress another. margins Good you shareholder like operator. We but the this one commitment our joining foundation customers their offense for forward is Together, on drive of to and look and like financial This foundation, I'd the you weather a cash pandemic, evening. allows thank expanding us free you,

Operator

participation. conference. you This your for concludes Thank today's

You time. lines your at may disconnect this

Benefitfocus (BNFT) 9 Aug 202020 Q2 Earnings call transcript