Benefitfocus, Inc. (NASDAQ:BNFT) Q2 2020 Earnings Conference Call - Final Transcript

Aug 05, 2020 • 05:00 pm ET


Benefitfocus, Inc. (NASDAQ:BNFT) Q2 2020 Earnings Conference Call - Final Transcript


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Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to Benefitfocus Q2 2020 Earnings Call. [Operator Instructions] Please note, this conference is being recorded.

I will now turn the conference over to your host, Patti Leahy. Thank you. You may begin.

Patti Leahy

Thank you, operator. Good afternoon, and welcome to Benefitfocus' second quarter 2020 earnings call. Joining me today are Ray August, President and Chief Executive Officer; and Steve Swad, Chief Financial Officer. Ray and Steve will provide some prepared remarks, and then we'll open the call up for questions.

Before we begin, let me remind you that today's discussion will include forward-looking statements such as third quarter and full year 2020 guidance and other predictions, expectations and information that might be considered forward-looking under federal securities 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 as of any subsequent date. These statements are subject to volatility and uncertainty in the global economy and financial markets in light of the evolving COVID-19 pandemic; a variety of risks and uncertainties, including our continuing losses and need to achieve GAAP profitability; the fluctuation of our financial results; the immature and volatile market for our products and services; recruitment and retention of key personnel; risks associated with acquisitions; the need to innovate and provide useful products and services; our ability to compete effectively; cybersecurity risks; and a changing regulatory environment that could cause actual results to differ materially from expectations. For further discussion of the material risks and other important factors that could affect our actual results, please refer to our annual report on Form 10-K and our 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 earnings press release.

I'll now turn the call over to Ray.

Raymond August

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

There are two key factors I want to leave you with today. First, we have dramatically strengthened our financial foundation. We are executing well against the cost actions we shared with you last quarter in response to the pandemic. Our decisive actions and strong execution have positioned us to enhance our profitability, generate free cash flow and expand margins. We have also added substantial liquidity, which helps us weather any potential for an extended recession, while providing us flexibility to invest for future growth.

This leads us to our second key takeaway. We continue to invest in the business and strengthen our value proposition. We believe our mission, to improve lives with benefits, has never been more important or more necessary. We are executing in high-impact areas, such as helping reduce health