Shares of Castlight Health (NYSE:CSLT) closed up 24% on Friday following the release of solid fourth-quarter earnings after the closing bell on Thursday. The results beat management’s expectations with the company posting $7.5 million in cash flow from operations during the fourth quarter, the first cash-flow-positive quarter in Castlight’s history.
Specifically, fourth-quarter revenue increased 13% year over year, to $42.1 million. Looking at just subscription revenue, the year-over-year increase came in at a more impressive 17%.
The company shrunk the bottom-line loss from $0.05 per share in the year-ago quarter to a loss of $0.03 per share in the most recent quarter. On an adjusted basis, Castlight Health turned a slight profit of $0.01 per share, compared to a $0.03 loss in the year-ago quarter.
“Based on these accomplishments, we’ve crossed a major threshold in the transformation of our business and believe we are in a strong position as the clear leader in digital health navigation,” Castlight’s CEO John Doyle said on the conference call.
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Management is looking for 2019 revenue of $153 million to $158 million, basically flat year over year from the $156.4 million that the company recorded last year, although the better comparator might be the $150.5 million in annualized recurring revenue that Castlight posted last year.
Nevertheless, the bottom line will improve with an expected adjusted operating income of breakeven to $5 million, compared to an adjusted operating loss of $12.7 million last year. The adjusted earnings line also looks to improve at flat to $0.03 per share, compared to a loss of $0.09 per share last year.