Connecture widens loss in third quarter

Brookfield marketplace developer increases revenue

Surges

Brookfield-based Connecture Inc. widened its loss, but pulled in more revenue in its third quarter than in the same period last year.

Surges
Surges

The company, which provides web-based information systems used to create health insurance marketplaces, reported a net loss of $3.1 million, or 18 cents lost per share, in the third quarter, compared with a $2.3 million net loss, or 11 cents lost per share, in the third quarter of 2015.

Revenue was $24.7 million in the third quarter, up from $22.7 million in the same period last year.

The operating loss was $2.5 million in the third quarter, compared with $894,000 in the third quarter of 2015.

Connecture said it did add five new customers during the quarter, and renewed all of its customer contracts that were up for renewal during the quarter. Among the renewals were Blue Cross Blue Shield of Massachusetts, Blue Cross Blue Shield of Nebraska, Independence Blue Cross, Nationwide, SCAN Health and Stanford Health Care.

The company has been busy this year. In May, it received a $52 million investment from a California private equity firm and in June, Connecture acquired a Chicago health insurance consumer platform for $5 million.

“While our third quarter revenue was better than expected, our profitability was impacted by greater than expected resources required to assist recently implemented customers,” said Jeff Surges, president and chief executive officer of Connecture, in a statement. “In light of these results, we are continuing our focus on cost management and productivity initiatives to lower expenses while ensuring that we continue to meet our clients’ expectations. We are confident that these efforts will improve our results as we close out the last quarter and head into 2017.”

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Molly Dill, former BizTimes Milwaukee managing editor.

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