Castlight Health, Inc. (NYSE:CSLT) Q1 2019 Earnings Conference Call Transcript

May 02, 2019 • 08:00 pm ET

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Castlight Health, Inc. (NYSE:CSLT) Q1 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon. My name is Chris, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Castlight Health Q1 2019 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions)

Thank you. Gary Fuges, Head of Investor Relations, you may begin the conference.

Executive
Gary J. Fuges

Good afternoon, and welcome to the Castlight Health First Quarter 2019 Conference Call. Joining me on the call today are John Doyle, CEO; and Siobhan Nolan Mangini, Chief Financial Officer. John and Siobhan will offer their prepared remarks, and then we will open the call up to take your questions. Our press release, webcast and slide presentations are available on our website.

This call contains forward-looking statements regarding our trends, strategies and the anticipated performance of our business, including our guidance for the full year of 2019; expected ARR growth; timing of platform migrations; timing of cash flow and non-GAAP operating break-even; cost-saving efforts; impact of non-renewals; direct and channel sales momentum; our ability to add additional channel partners; future churn risk and future cash position. These statements were made as of May 2nd 2019 and reflect management's views and expectations at that time and are subject to various risks, uncertainties and assumptions. If this call is replayed after May 2nd 2019, the information in the call may no longer be current or accurate. We disclaim any obligation to update or revise any forward-looking statements.

We provide guidance in this call, but we will not provide any further guidance or updates on our performance during the quarter, unless we do so in a public forum. Please refer to today's press release and the risk factors included in the Company's filings with the Securities and Exchange Commission for a discussion of important factors that may cause actual events or results to differ materially from those contained in our forward-looking statements.

Today's presentation also includes certain non-GAAP metrics such as non-GAAP gross margin, operating expenses, operating loss, operating income and profitability, earnings per share and net loss per diluted share that we believe aid in the understanding of our financial results. A reconciliation to comparable GAAP metrics on a historical basis can be found in the appendix section of our earnings release filed before the call.

With that, I'll turn the call over to John Doyle, Castlight's CEO. John?

Executive
John Doyle

Thank you for joining us on the call today. The first quarter was a solid start to the year with results that we believe demonstrate the value of the product investments we've made over the last four years.

Two of our goals in 2019 are to accelerate new business and further improve the health of our overall book, and we made progress on both in Q1. We grew ARR by close to $4 million sequentially, with direct sales accounting for the majority of new business. In parallel, we launched a record number of new customers,