Healthcare Business News

Castlight losses shrink as revenue rises

By Joseph Conn
Posted: July 29, 2014 - 8:15 pm ET

One-time health-tech market darling Castlight Health remained unprofitable in the second quarter, although losing money less rapidly than earlier this year.

The company reported a second-quarter net loss that shrank by 10% to $21.8 million from $24.3 million in the first quarter.

Second-quarter revenue rose to $10.5 million, up 26% from $8.4 million in the first quarter. The company reported a second-quarter loss per share of $0.24 compared with a loss of $0.90 per share for the first quarter.

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Castlight, whose shares saw a meteoric rise and then a protracted fall following its initial public stock offering this spring, is focused on growth, said Dr. Giovanni Colella, co-founder and CEO.

Colella, in announcing the San Francisco-based company’s second-quarter results Tuesday, emphasized its increasing top-line revenue and its pipeline of potential new business that he pronounced to be “very, very strong for the next two quarters.”

In its first full quarter as a publicly traded company, the provider of cloud-based services for employers to help their employees become better healthcare shoppers saw its customer base grow 14% to 130, up from 114 in the first quarter. Among the new customers were six Fortune 500 companies, Colella said.

Castlight stock went public March 14 at $16 a share and shot up 148% that day to close at $39.80.

Its share price has long since come back down to earth, trading at $14.81 at the close Tuesday, up 4.9% from the day before.

Follow Joseph Conn on Twitter: @MHJConn

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