Benefitfocus Investor Presentation

Third Quarter 2020

Safe Harbor

Except for historical information, all of the statements, expectations, and assumptions contained in this presentation are forward-looking statements. Actual results might differ materially from those explicit or implicit in the forward-looking statements. Important factors that could cause actual results to differ materially include: volatility and uncertainty in the global economy and financial markets in light of the evolving COVID-19 pandemic and uncertainties arising from the recent U.S. elections; our continuing losses and need to achieve GAAP profitability; fluctuations in our financial results; our ability to maintain our culture, retain and motivate qualified personnel; the immature and volatile market for our products and services; risks related to changing healthcare and other applicable regulations; risks associated with acquisitions; cyber-security risks; the need to innovate and provide useful products and services; our ability to compete effectively; privacy, security and other risks associated with our business; and the other risk factors set forth from time to time in our SEC filings, copies of which are available free of charge within the Investor Relations section of

the Benefitfocus website at http://investor.benefitfocus.com/sec-filingsor upon request from our Investor Relations Department. Benefitfocus assumes no obligation and does not intend to update these forward-looking statements, except as required by law.

Non-GAAP Financial Measures

The company uses certain non-GAAP financial measures in this release, including non-GAAP gross profit, operating income/loss, net loss/income, net loss/income per common share, adjusted EBITDA and free cash flow. Generally, a non-GAAP financial measure is a numerical measure of a company's performance or financial position that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP.

Non-GAAP gross profit, operating income/loss, net loss/income and net loss/income per common share exclude stock-based compensation expenses, amortization of acquisition-related intangible assets, transaction and acquisition-related costs expensed, if any, restructuring charges, if any, gain or loss on extinguishment of debt, if any, and costs not core to our business, if any. We define adjusted EBITDA as net loss before net interest, taxes, and depreciation and amortization expense, adjusted to eliminate stock-based compensation expense, expense related to the impairment of goodwill and intangible assets, transaction and acquisition-related costs expensed, restructuring charges, gain or loss on extinguishment of debt, and costs not core to our business. We define free cash flow as cash used in operating activities less capital expenditures, adjusted to eliminate restructuring charges. Beginning in the third quarter of 2020, we revised our definitions of non-GAAP net loss/income and net loss/income per common share and adjusted EBITDA to also exclude gain or loss of extinguishment of debt. The revisions to these definitions had no impact on our reported non-GAAP net loss/income and net loss/income per common share and adjusted EBITDA for periods prior to the three months ended September 30, 2020. Please note that other companies might define their non-GAAP financial measures differently than we do.

Management presents these non-GAAP financial measures in this release because it considers them to be important supplemental measures of performance. Management uses these non-GAAP financial measures for planning purposes, including analysis of the company's performance against prior periods, the preparation of operating budgets and to determine appropriate levels of operating and capital investments. Management believes that these non-GAAP financial measures provide additional insight for analysts and investors in evaluating the company's financial and operational performance. Management also intends to provide these non-GAAP financial measures as part of the company's future earnings discussions and, therefore, their inclusion should provide consistency in the company's financial reporting. Non-GAAP financial measures have limitations as an analytical tool. Investors are encouraged to review the reconciliation of the non-GAAP measures to their most directly comparable GAAP measures provided in this release, including in the accompanying tables.

Our mission is to

improve lives with benefits.

Benefitfocus is one of the largest benefits platforms in the U.S. enabling benefits enrollment and data exchange for Health Plans and Employers

One of the largest benefits platforms in the U.S. and massive, growing market

Delivering value to Health Plan and Employer markets

Diversified recurring revenue, improving operating leverage and disciplined capital strategy

Executing growth strategy to unlock shareholder value

One of the largest benefits platforms in the U.S. and massive, growing market

Massive TAM with Significant Opportunity

~$30B

2020 TAM

Source: Benefitfocus as of December 31, 2019

Delivering value to Health Plan and Employer markets

Competitive Differentiation

Market leading data transfer capabilities

AI-powered platform

Vast and unique data assets

Industry leading voluntary benefit products

AI-powered Platform: Benefitsaige is the AI that Delivers Insights across our Ecosystem

Personalized Benefits

Consumers connect to the benefits their families need.

Population Health Insights

Employers control healthcare costs and optimize benefit strategy.

Operational Scale

Health Plans gain operational scale with a connected, digital ecosystem

Industry Leading Products: Comprehensive and Curated Marketplace of Suppliers

Benefit Catalog

Robust portfolio of trusted health, wealth, property and lifestyle voluntary benefits integrated into our enrollment experience.

Diversified recurring revenue, improving operating leverage and disciplined capital strategy

Diverse Revenue Streams

Platform

Employers

Professional Services

Proactively Managing Impact of COVID-19

Decisive cost management actions;

Focused on highly profitable revenue

Improving margins, adjusted EBITDA and Free Cash Flow

Investing in efficiencies and automation to deliver exceptional customer experience

Recurring and Repeatable Revenue

Note: 2020 estimate based on midpoint of full year guidance provided November 5, 2020; See important disclosures on

non-GAAP financial measures and GAAP to non-GAAP reconciliation on slides 2 and 27.

Executing growth strategy to unlock shareholder value

Strategic Priorities to Unlock Shareholder Value

Deliver on Customer Promises

Industry leading NPS

Expand profitability

Industry leading margins

Invest for growth

Focused on enrollment, engagement and data

Investing for Growth

Extend Market Leadership

One of the largest benefits platforms in the U.S. and massive, growing market

Delivering value to Health Plan and Employer markets

Diversified recurring revenue, improving operating leverage and disciplined capital strategy

Executing growth strategy to unlock shareholder value

GAAP to non-GAAP Reconciliation

Benefitfocus Investor Presentation

Third Quarter 2020