WageWorks, Inc. (the “Company”) (NYSE: WAGE), a leading provider of Consumer-Directed Benefits (CDBs), such as pre-tax accounts for health, commuter and other employee benefits, today announced the Company's financial results for its third quarter ended September 30, 2013.
“This was another strong quarter for WageWorks. We just completed a successful enterprise selling season and are pleased with the record number of quality companies, including Tiffany & Co., American Airlines and NextEra Energy (Florida Power & Light), that selected WageWorks to administer their Consumer-Directed Benefit plans in 2014. In addition, we have made significant progress with our recently announced channel partnership with Ceridian, and are preparing for the kick-off of Towers Watson’s OneExchange Active private healthcare exchange. Finally, we are thrilled with the modification the U.S. Department of the Treasury has made to the “Use It or Lose It” rule that relates to healthcare flexible spending accounts. Now, if adopted, working Americans will be able to carryover up to $500 of unused funds into the next plan year. All of these are exciting developments that are furthering our momentum in the marketplace,” said Joe Jackson, Chief Executive Officer of WageWorks.
For the third quarter, WageWorks reported total revenue of $53.6 million, compared to $42.5 million for the third quarter of 2012, an increase of 26 percent. Healthcare revenue was $32.6 million, compared to $26.5 million for the third quarter of 2012, an increase of 23 percent. Commuter revenue was $14.9 million, compared to $13.1 million for the third quarter of 2012, an increase of 14 percent. Other revenue was $6.0 million, compared to $2.9 million for the third quarter of 2012, an increase of 103 percent.
GAAP operating income was $9.9 million for the third quarter of 2013, compared to GAAP operating income of $5.0 million for the third quarter of 2012. On a non-GAAP basis, third quarter of 2013 operating income was $11.3 million, compared to non-GAAP operating income of $8.1 million for the third quarter of 2012.