- The stock price of Accolade Inc (NASDAQ: ACCD) increased by over 20% during intraday trading today. This is why it happened.
The stock price of Accolade Inc (NASDAQ: ACCD) increased by over 20% during intraday trading today. Investors are responding positively to the company’s results for the third quarter of 2022.
These are the highlights:
— Fiscal third-quarter 2022 revenue of $83.5 million, a 117% increase compared to fiscal third-quarter 2021 revenue of $38.4 million
— Company introduces preliminary guidance for the fiscal year 2023, expecting 25% growth in revenue and a reduction in Adjusted EBITDA loss
— Initial Accolade One and Accolade Care customers launched on January 1, 2022
Accolade provides forward-looking guidance on revenue and Adjusted EBITDA, a non-GAAP financial measure.
For the fiscal fourth-quarter ending February 28, 2022, the company expects:
— Revenue between $90 million and $93 million
— Adjusted EBITDA between $(4) million and $(8) million
For the fiscal year ending February 28, 2022, the company updated the revenue and Adjusted EBITDA ranges as follows:
— Revenue between $306 million and $309 million (previously $303 million and $307 million)
— Adjusted EBITDA between $(48) million and $(52) million, representing a range of (16% to 17%) of revenue (previously $(49) million and $(54) million)
For the fiscal year ending February 28, 2023, the company introduced preliminary revenue and Adjusted EBITDA guidance as follows:
— Revenue growth of 25% over the fiscal year 2022
— Adjusted EBITDA in a range of (11% to 12%) of revenue
“As we enter the fourth quarter with a more integrated suite of offerings and expanded go-to-market motion, we are beginning to see the positive impact of combining Accolade, 2nd.MD and PlushCare. Among our 200+ new customers, and expansions with existing customers, we are seeing more companies select multiple Accolade offerings, demonstrating the value of the extended portfolio and laying the foundation for Accolade One and Accolade Care. Our preliminary revenue guidance of 25% growth in fiscal year 2023 shows the consistency and stability of our business, and our Adjusted EBITDA guidance demonstrates our focus on improving our bottom line performance with a target of achieving breakeven Adjusted EBITDA in fiscal year 2025.”
“The strong outperformance was largely driven by earlier than expected achievement of approximately $7 million of performance-based revenue, including $2.5 million that was previously included in our third quarter guidance. This revenue recognition is a direct result of Accolade’s continued success in delivering measurement-based outcomes for our customers. We believe that achieving our performance-related revenue throughout the year demonstrates the maturation and predictability of the business and provides greater visibility into our full year revenue goals.”
— Accolade Chief Financial Officer Steve Barnes
“It is remarkable for me to look back at the last twelve months and consider Accolade’s transformation from a navigation and advocacy company to a personalized healthcare company. In January 2021, we were serving about 100 customers and 2 million members. Today, with the integration of primary care, mental health and expert medical opinion from our acquisitions of PlushCare and 2nd.MD, we now serve more than 600 customers and 10 million members, having added more than 200 customers since combining our companies. With the January 1 launch of our first customers on Accolade Care and Accolade One, we have completed the transition from a company that focused solely on providing navigation, guidance, and recommendations to our members, to a dramatically more impactful company that has all the capabilities to deliver an end-to-end care journey that can transform the healthcare experience. Through it all, we remain focused on our belief that no single company can fix healthcare in America, and we will continue to work across the industry with any company committed to helping people live their healthiest lives.”
— Rajeev Singh, Accolade Chief Executive Officer
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.