The provider of web-based consumer shopping, enrollment and retention platforms for health insurance reported a net loss of $9.9 million, more than double the $4.3 million loss it reported last year. The result moved the company’s loss from 20 to 47 cents per diluted share.
Revenue was off 20 percent to $18.7 million. The company said that excluding lower revenues in its enterprise/state segment, which was off $3 million, and $3.6 million in revenue during the 2015 second quarter from two terminated health plan customers, revenue was up 12 percent.
“Our financial performance in the second quarter fell short of our expectations as portions of our business undertake transitions that are taking longer than originally expected,” said Jeff Surges, Connecture president and chief executive officer. “While we are encouraged with our progress during this time to materially strengthen our core offerings and capabilities, along with completing the retooling of our go-to-market approach and sales organization, we have more work to do before our revenue growth and profitability will reach our targeted levels.
Surges said the company was able to add several important new customers and expand relationships with existing clients during the quarter. The company’s backlog was up to $95.7 million at the end of the quarter, compared to $94 million at the end of March and $85.5 million at the end of the second quarter in 2015.
The company also announced the acquisition of ConnectedHealth in June.
Still, the company lowered guidance for the full year, expecting revenue to be in the range of $85 million to $88 million after previously projecting $100 million to $110 million.
The company said year-over-year revenue is below initial expectations, customers have been slower to adopt the company’s private exchange solutions, a reduced focus on the state/Medicaid opportunity and customers transitioning to a newer platform
The reduced revenue projections and higher fixed costs led the company to lower its adjusted EBITDA guidance to a range of zero to $2 million, down from $10.5 to $12 million.