Benefitfocus, Inc. (NASDAQ:BNFT) Q3 2019 Earnings Conference Call - Final Transcript

Nov 06, 2019 • 05:00 pm ET


Benefitfocus, Inc. (NASDAQ:BNFT) Q3 2019 Earnings Conference Call - Final Transcript


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Greetings. Welcome to the Benefitfocus Third Quarter 2019 Earnings Conference Call. [Operator Instructions] Please note this conference is being recorded.

I'll now turn the conference over to your host, Mr. Mike Bauer, Vice President of Finance and Investor Relations. You may begin.

Mike Bauer

Thank you, operator. Good afternoon, and welcome to Benefitfocus' third quarter 2019 earnings call. We will be discussing the operating results announced in our press release issued after the close of market today. Joining me today are Ray August, our President and Chief Executive Officer; and Steve Swad, our Chief Financial Officer. Ray and Steve will offer some prepared remarks, and then we'll open the call up for a Q&A session.

Before we begin, let me remind you that today's discussion will include forward-looking statements, such as full year 2019 guidance and other predictions, expectations and information that might be considered forward-looking under federal security laws, including statements about our positioning for the future. These statements reflect our views as of today only, and should not be considered as representing our views of any subsequent date.

These statements are subject to a variety of risks and uncertainties, including our losses and need to achieve GAAP profitability, the fluctuation of our financial results, the immature and volatile market of our products and services, recruitment and retention of key personnel, risk associated with acquisitions, the need to innovate and provide useful products and services, our ability to compete effectively, cybersecurity risk and a changing regulatory environment that could cause actual results to differ materially from expectations. For a further discussion of material risks and other important factors that could affect our actual results, please refer to our Annual Report on Form 10-K and other SEC filings.

During the course of today's call, we will also refer to certain non-GAAP financial measures. You can find important disclosures about those measures in our press -- in our earnings press release.

I'll now turn the call over to Ray.

Ray August

Thank you, Mike. Good afternoon, everyone. Benefitfocus is working to fundamentally transform how benefits are bought and sold in the United States. We continue to make solid progress, and the accomplishments in the third quarter and year-to-date are helping us achieve our -- achieve this goal of transformation.

Multiple factors across our business position us to be a market leader, but three key differentiators are core and unique to Benefitfocus. First is our AI-powered platform. It is designed to remove friction, improve the consumer experience and increase benefits participation. It helps employees engage with what they want and need year-round, not just during a two-week open enrollment period. Second is our end-to-end network. We are adding lives at scale to our platform. Our ecosystem is unmatched. It continues to strengthen as we add buyers, employers, employees and freelance workers as well as sellers, carriers, suppliers and brokers.

Third is our emerging platform business model. We collect transactional revenue from sellers on our platform and subscription revenue from buyers on our platform. This means our BenefitsPlace