San Francisco-based Castlight Health, which offers a personalized health shopping platform aimed at equipping employees with transparency on both pricing and quality, added some big names to its subscription service and saw increase in both revenue and cash in the second quarter of 2016.
Additionally, the company is focusing its sales model by leveraging the data sets provided by its health benefits platform, particularly Castlight Elevate, which identifies employees who are at-risk of behavioral health issues and gives them access to care.
In an announcement of the quarterly results, cofounder and CEO of Castlight Health Dr. Giovanni Colella announced the company added nearly $7 million of signed annual recurring revenue and continued to “gain traction among large enterprises,” including Caterpillar and Genentech.
“We had strong adoption of Castlight’s health benefits platform across our new customers and our channel relationships, in particular Anthem, which provide validation of both our expanding value proposition and the evolution of our go-to-market strategy,” Colella said in a statement.
Colella spoke of the recent agreement with SAP, in which Castlight is participating in the SAP Connected Health Platform.
“As part of their commitment to the success of our relationship, SAP invested $18 million in Castlight. In the next phase of the alliance, Castlight plans to participate in the newly launched SAP Connected Health platform and to work with SAP SuccessFactors to bring health and wellness to the HR suite,” said Colella.
Castlight Health President and COO John C. Doyle said the second quarter was the biggest for profit from new customers since the third quarter of 2014, accounting for more than double the level of last year’s second quarter. The company saw a 27 percent increase in revenue since last year’s second quarter, totaling $23.6 million. Revenues from subscriptions rose to $22 million, accounting for a 27 percent increase year over year. Gross margin was 62 percent.
“We believe that broad adoption of Castlight’s health benefits platform will put us in a strong, defensible position as our customers’ most important technology partner for managing their healthcare priorities,” Doyle said.
With Anthem, Castlight, will work with their research and development counterparts to power the cost and quality transparency tool that Anthem’s affiliated health plans offer through their member website.
“Together, we’re executing a phased rollout and are on track to deliver these new capabilities to a subset of Anthem members by the year’s end,” Doyle said.