SEATTLE, Oct. 08, 2024 (GLOBE NEWSWIRE) -- Accolade, Inc. (NASDAQ:ACCD) today announced financial results for the fiscal second quarter ended August 31, 2024.
"As we enter the second half of fiscal year 2025, we are well positioned to deliver our first full year of Adjusted EBITDA profitability and positive cash flow. Accolade is proving the scalability and profitability of a business model and strategy that is fundamentally designed to improve the lives of millions of people and their families. Our focus remains on solving the Physician Gap through a physician-led advocacy approach that engages the entire healthcare ecosystem and enables a better healthcare experience for our members," said Rajeev Singh, Accolade Chairman of the Board of Directors and Chief Executive Officer.
Financial Highlights for Fiscal Second Quarter ended August 31, 2024
Three months ended August 31,
% Change(2)
2024
2023
(in millions, except percentages)
GAAP Financial Data:
Revenue
$
106.4
$
96.9
10
%
Net loss
$
(23.9
)
$
(32.8
)
27
%
Non-GAAP Financial Data(1):
Adjusted EBITDA
$
(2.8
)
$
(8.8
)
68
%
Adjusted Gross Profit
$
50.3
$
42.8
17
%
Adjusted Gross Margin
47.3
%
44.2
%
(1)
A reconciliation of GAAP to non-GAAP results has been provided in this press release in the accompanying Financial Tables. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."
(2)
Percentages are calculated from accompanying Financial Tables and may differ from percentage change of numbers in Financial Highlights table due to rounding.
Steve Barnes, Accolade Chief Financial Officer, commented, "Accolade continues to execute against our primary objective of delivering profitable growth and positive Adjusted EBITDA this year. Our first half results demonstrate our proven ability to grow top line revenue and manage our cost structure to achieve our profit goals. In the past year, our net cash position, compared to our convertible debt, has improved by more than $20 million, providing the operating leverage and flexibility to execute our strategy."
Financial Outlook
Accolade provides forward-looking guidance on revenue and Adjusted EBITDA, a non-GAAP financial measure.
For the fiscal third quarter ending November 30, 2024, we expect:
Revenue between $104 million and $107 million
Adjusted EBITDA loss between $3 million and $5 million
For the fiscal year ending February 28, 2025, we expect:
Revenue between $460 million and $475 million
Adjusted EBITDA between $15 million and $20 million
Accolade has not reconciled guidance for Adjusted EBITDA to net loss, the most directly comparable GAAP measure, and has not provided forward-looking guidance for net loss, because there are items that may impact net loss, including stock-based compensation, that are not within the company's control or cannot be reasonably predicted.
Quarterly Conference Call Details
The company will host a conference call today, October 8, 2024 at 8:00 a.m. E.T. to discuss its financial results. To Listen via Telephone: Pre-registration is required by the conference call operator. Please pre-register by clicking here (https://register.vevent.com/register/BI0b6b999c6e7b47fdb26d7e8a774df09f). Upon registering, you will be emailed a dial-in number, direct passcode and unique PIN.
To Listen via Internet: The conference call can be accessed via a live audio webcast that will be available online at http://ir.accolade.com.
Replay: A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call, at http://ir.accolade.com.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements include statements regarding our future growth and our financial outlook. Forward-looking statements are subject to risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "maintain," "might," "likely," "plan," "potential," "predict," "project," "seek," "should," "target," "will," "would," or similar expressions and the negatives of those terms.
Important risks and uncertainties that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the risks described under the heading "Risk Factors" in Accolade's most recently filed Annual Report on Form 10-K and subsequent filings, which should be read in conjunction with any forward-looking statements. All forward-looking statements in this press release are based on information available to Accolade as of the date hereof, and it does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made, except as required by law.
About Accolade, Inc.
Accolade (NASDAQ:ACCD) is a Personalized Healthcare company that provides millions of people and their families with exceptional healthcare experiences so they can live their healthiest lives. Accolade's employer, health plan, and consumer solutions combine virtual primary care and mental health, expert medical opinion, and best-in-class care navigation. These offerings are built on a platform that is engineered to care through predictive engagement of population health needs, proactive care that improves outcomes and cost savings, and by addressing barriers to access and continuity of care. Accolade consistently receives consumer satisfaction ratings of over 90%. For more information, visit accolade.com. Follow us on LinkedIn, Twitter, Instagram and Facebook.
Investor Contact:
Todd Friedman, Investor Relations,
Media Contact:
Public Relations,
Source: Accolade
Financial Tables
Accolade, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (unaudited)
(In thousands, except share and per share data)
August 31, 2024
February 29, 2024
Assets
Current assets:
Cash and cash equivalents
$
173,315
$
185,718
Marketable securities
61,035
51,315
Accounts receivable, net
21,224
21,800
Unbilled revenue
3,994
5,902
Current portion of deferred contract acquisition costs
4,299
4,369
Prepaid and other current assets
10,869
15,808
Total current assets
274,736
284,912
Property and equipment, net
18,927
19,140
Operating lease right-of-use assets
25,647
28,340
Goodwill
278,191
278,191
Intangible assets, net
147,642
165,407
Deferred contract acquisition costs
8,733
9,608
Other assets
2,196
2,553
Total assets
$
756,072
$
788,151
Liabilities and stockholders' equity
Current liabilities:
Accounts payable
$
9,027
$
13,749
Accrued expenses and other current liabilities
11,434
10,736
Accrued compensation
26,924
23,392
Due to customers
5,857
18,552
Current portion of deferred revenue
40,710
34,770
Current portion of operating lease liabilities
7,068
6,651
Total current liabilities
101,020
107,850
Loans payable, net of unamortized issuance costs
209,098
208,482
Operating lease liabilities
22,642
26,077
Other noncurrent liabilities
153
156
Deferred revenue
85
121
Total liabilities
332,998
342,686
Commitments and Contingencies
Stockholders' equity
Common stock par value $0.0001; 500,000,000 shares authorized; 80,373,402 and 78,070,781 shares issued and outstanding at August 31, 2024 and February 29, 2024, respectively
8
8
Additional paid-in capital
1,528,665
1,499,603
Accumulated other comprehensive income (loss)
26
(47
)
Accumulated deficit
(1,105,625
)
(1,054,099
)
Total stockholders' equity
423,074
445,465
Total liabilities and stockholders' equity
$
756,072
$
788,151
Accolade, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations (unaudited)
(In thousands, except share and per share data)
Three months ended August 31,
Six months ended August 31,
2024
2023
2024
2023
Revenue
$
106,360
$
96,864
$
216,826
$
190,090
Cost of revenue, excluding depreciation and amortization
56,922
55,317
115,533
