SAN FRANCISCO, Oct. 25, 2017 /PRNewswire/ -- Castlight Health, Inc. (NYSE:CSLT), a leading health benefits platform provider, today announced results for its third quarter ended September 30, 2017.

"We are encouraged by our second consecutive quarter of solid financial performance after closing the Jiff acquisition, with new business momentum, continued operating efficiencies and a broadening product footprint across our customer base," said John Doyle, chief executive officer of Castlight Health. "With our comprehensive platform that simplifies healthcare navigation, we believe we help employers achieve more with their benefits spending and help their employees lead healthier, happier, and more productive lives."

Financial performance for the three months ended September 30, 2017 compared to the three months ended September 30, 2016:

• Total revenue of $34.6 million, an increase of 36%
• Subscription revenue of $31.4 million, an increase of 31%
• Gross margin of 62.3%, compared to 68.8%
• Non-GAAP gross margin of 66.9% compared to 72.1%
• Operating loss of $18.6 million, compared to a loss of $11.5 million
• Non-GAAP operating loss of $6.6 million, compared to a loss of $5.5 million
• Net loss per diluted share of $0.14, compared to a net loss per diluted share of $0.11
• Non-GAAP net loss per diluted share of $0.05, compared to a net loss per diluted share of $0.05
• Cash used in operations of $8.4 million, compared to $9.4 million used in operations

Total cash, cash equivalents and marketable securities was $87.1 million as of September 30, 2017.

The financial performance of Jiff, Inc., which Castlight acquired on April 3, 2017, is not included in the year-ago period metrics. A reconciliation of GAAP to non-GAAP results has been provided in this press release in the accompanying tables. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."

Board of Directors Changes

Castlight Health today also announced changes to its board of directors. Castlight co-founder and executive chairperson Dr. Giovanni M. Colella and Jiff, Inc. co-founder Mr. James Currier, have stepped down from the Castlight board, effective today. Dr. Bryan Roberts, currently serving as lead independent director, assumed the chairperson role which he previously held from 2010 to April 2017. Additionally, Mr. Seth Cohen, an experienced senior sales leader at Castlight, will be joining the board, effective January 1, 2018.

"We would like to thank Gio and James for helping create two of the most revolutionary and successful companies in digital health that, combined, simplify healthcare for both employers and their employees. The board and the Castlight team are indebted to Gio and James for their vision, leadership and valuable contributions, and I would like to thank Gio personally for his mentorship over the years," said John Doyle, chief executive officer of Castlight Health. "The board and I look forward to working with Seth, who brings a valuable, customer-centric perspective to our board that I believe will help us accelerate the adoption of our health navigation platform."

"With Castlight's increased focus on execution across its go-to-market, product integration and sustainability initiatives, James and I concluded it is the right time to step down from the board," said Dr. Giovanni M. Colella. "We are incredibly proud of the Castlight family and believe the company, under its excellent leadership from John and Derek, is in a strong position to deliver on its strategy. James and I wish the entire Castlight team continued success."

About Seth Cohen

A sales leader with the company since November 2010, Mr. Cohen is currently Castlight's vice president, sales and alliances, and has extensive experience in digital healthcare go-to-market execution.  Prior to joining Castlight, Mr. Cohen was a consultant for McKinsey & Company as a member of their healthcare payer and provider practice, and an adjudicator for the Beacon Community Grant program within the U.S. Department of Health and Human Services. Mr. Cohen holds a MBA from the Harvard Business School, an MPH from the Harvard Kennedy School, and a BA in International Relations from Stanford University.

Business Outlook

For the full year 2017, the Company expects GAAP revenue to be above $130 million. Based on operating expense synergies, Castlight expects to beat its previously-issued full year 2017 non-GAAP operating loss guidance range of $31 to $35 million. The company also expects to beat its previously-issued full year 2017 non-GAAP net loss per share guidance range of approximately $0.24 to $0.28, based on approximately 125 to 127 million shares.  Non-GAAP guidance metrics exclude the effects of stock-based compensation, amortization of intangibles, capitalization and amortization of internal-use software, changes in fair value of contingent consideration, and charges related to the acquisition.

Quarterly Conference Call

Castlight Health senior management will host a conference call to discuss its third quarter 2017 results and business outlook today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). A live audio webcast of the conference call, together with detailed financial information, can be accessed through the company's Investor Relations website at http://ir.castlighthealth.com. An archive of the webcast can also be accessed through the same link. The live conference call can be accessed by dialing (866) 393-4306. The conference ID number is 93260120. A replay will be available for one week at (855) 859-2056, passcode 93260120.

About Castlight Health

Castlight is on a mission to make it as easy as humanly possible to navigate healthcare and live happier, healthier, more productive lives. Our health navigation platform connects with hundreds of health vendors, benefits resources, and plan designs, giving rise to the world's first comprehensive app for all health needs. We guide individuals - based on their unique profile - to the best resources available to them, whether they are healthy, chronically ill, or actively seeking medical care. In doing so, we help companies regain control over rising healthcare costs and get more value from their benefits investments. Castlight revolutionized the healthcare sector with the introduction of data-driven price transparency tools in 2008 and the first consumer-grade wellbeing platform in 2012. Today, Castlight serves as the health navigation platform for millions of people and is a trusted partner to many of the largest employers in the world.

For more information visit www.castlighthealth.com. Follow us on Twitter and LinkedIn and Like us on Facebook.

Non-GAAP Financial Measures

To supplement Castlight Health's financial statements presented in accordance with generally accepted accounting principles (GAAP), we also use and provide investors and others with non-GAAP measures of certain components of financial performance, including non-GAAP gross profit and margin, non-GAAP operating expense, non-GAAP operating loss, non-GAAP net loss and non-GAAP net loss per share. Non-GAAP gross profit and margin, non-GAAP operating expense, non-GAAP operating loss and non-GAAP net loss exclude stock-based compensation, litigation settlement, charges related to a reduction in workforce, amortization of intangibles, capitalization and amortization of internal-use software, changes in fair value of contingent consideration and charges related to the acquisition and the associated tax impact of these items, where applicable.

We believe that these non-GAAP financial measures provide useful supplemental information to investors and others, facilitate the analysis of the company's core operating results and comparison of operating results across reporting periods, and can help enhance overall understanding of the company's historical financial performance.

We have provided a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure, except that we have not reconciled our non-GAAP operating loss and net loss per share guidance for the full year 2017 to comparable GAAP operating loss and net loss per share guidance because we do not provide guidance for stock-based compensation expense, capitalization and amortization of internal-use software, changes in fair value of contingent consideration and charges related to the acquisition, which are reconciling items between GAAP and non-GAAP operating loss. The factors that may impact our future stock-based compensation expense and capitalization and amortization of internal-use software are out of our control and/or cannot be reasonably predicted, and therefore we are unable to provide such guidance without unreasonable effort. Factors include our market capitalization and related volatility of our stock price and our inability to project the cost or scope of internally produced software and charges related to the proposed acquisition for the year.

These non-GAAP financial measures should be considered in addition to, not as a substitute for or in isolation from, measures prepared in accordance with GAAP.

Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore comparability may be limited. Castlight Health encourages investors and others to review the company's financial information in its entirety and not rely on a single financial measure.

Safe Harbor For Forward-Looking Statements

This press release contains forward-looking statements about Castlight Health's expectations, plans, intentions, and strategies, including, but not limited to, statements regarding Castlight Health's 2017 full year projections, our expectations for future performance of our business, market growth and business conditions, future innovation by the company and future developments with respect to the digital healthcare industry. Statements including words such as "anticipate," "believe," "estimate," "will," "continue," "expect," or "future," and statements in the future tense are forward-looking statements. These forward-looking statements involve risks and uncertainties, as well as assumptions, which, if they do not fully materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. The risks and uncertainties include those described in Castlight Health's documents filed with or furnished to the Securities and Exchange Commission. All forward-looking statements in this press release are based on information available to Castlight Health as of the date hereof. Castlight Health assumes no obligation to update these forward-looking statements.

Copyright 2017 Castlight Health, Inc. Castlight Health^® is the registered trademark of Castlight Health, Inc. Other company and product names may be trademarks of the respective companies with which they are associated.

Castlight Media Contact:
Shannon Magill
[email protected]
415-829-1500

Castlight Investor Contact:
Gary J. Fuges, CFA
[email protected]
415-829-1680

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SOURCE Castlight Health, Inc.