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.
Check out the latest earnings call transcript for Castlight Health.
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.