Connecture (CNXR) Misses Q2 EPS Views, Cuts FY16 Outlook

Connecture (NASDAQ: CNXR) reported Q2 EPS of ($0.47), $0.25 worse than the analyst estimate of ($0.22). Revenue for the quarter came in at $18.7 million versus the consensus estimate of $18.21 million.

GUIDANCE:

Connecture sees FY2016 revenue of $85-88 million, versus prior guidance of $100-110 million and the consensus of $97.3 million.

Adjusted EBITDA is expected to be in the range of zero to $2.0 million, down from the previously expected range of $10.5 million to $12.0 million due primarily to our reduced revenue guidance and given that our cost structure is comprised of higher fixed costs than variable costs. Of note, the revised guidance includes the impact of approximately $1.8 million of one-time severance, integration and acquisition costs associated with the ConnectedHealth acquisition that either have been incurred to date, or are expected to be incurred by the end of 2016. Adjusted EBITDA differs from GAAP net loss in that it excludes net interest, other expense, taxes, depreciation and amortization expense, adjusted to eliminate stock-based compensation and non-cash charges in fair value of contingent consideration and impairments of goodwill, intangibles and long-lived assets, if any. We are unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort. Therefore, we have not provided guidance for GAAP net loss or a reconciliation of the foregoing forward-looking Adjusted EBITDA guidance to GAAP net loss.

For earnings history and earnings-related data on Connecture (CNXR) click here.

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