Castlight Case study answers 1. Would you invest in Castlight Health, why or why not? (Explain your valuation) I personally believe it would be profitable to invest in Castlight Health. Since 2014 the company has shown a significant increase in their revenue. According to Macrotrends, the company showed in 2014 a revenue of $45 million, which is an increase from 2013 when the revenue was at $13 million. In 2018 the total revenue was $156 million, which shows the company has only increased over the last couple of years. Going into 2019 Castlight’s first quarterly report shows a decrease in their revenue of three percent (Castlight Health). Despite the decrease of the revenue Castlight’s CEO John Doyle said, “The first quarter was a solid start to the year with new business from our platform products, a record number of new customer launches, and financial results that were in-line with our full year outlook.” This predicts that Castlight still stick to their plans and believes that with the increase of customers will help the company to continue growing. Unfortunately, Castlight’s second quarter report also showed another decrease in their revenues (Castlight Health). Castlight might be facing some issues during 2019, but I still believe due to their revenue history the company would still be profitable to invest in. Every company will experience a decrease in their revenue, but it will be interesting to see if Castlight will be able to upward this revenue and meet their end of 2019 year goal with a revenue range between $153 million to $158 million according to Castlight’s second quarterly report statement (Castlight Health Inc.). According to Castlight Health’s Investor Relations it’s their mission to “make it as easy as humanly possible to navigate healthcare and live happier, healthier, more productive lives.” With that being said, Castlight knows that they are facing a difficult time, but with a review of a marketing strategy and evaluation of their competitors by using the four C’s will help the company to improve their revenue of 2019 and beginning of 2020.
2. What are the key data issues facing Castlight Health? How should Castlight deal with these issues?
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