Shares of benefits software vendor Benefitfocus, Inc. (NASDAQ:BNFT) fell in the first quarter after the company reported 2017 guidance that was lower than analysts expected. We see several short-term headwinds, including longer implementation periods for national accounts, slower employer signings because of a sales force restructuring, and a revenue share of BenefitStore commissions. While we believe these headwinds will weigh on reported growth through mid-2017, we don’t believe they impact its large long-term growth opportunity. (Neal Rosenberg)
From the Baron Focused Fund first quarter 2017 shareholder letter.
