Earnings call transcript Q1 2024

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Operator

Good day, and thank you for standing by, and welcome to Accolade First Quarter '24 Earnings Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to introduce your host for today's call, Todd Friedman, Senior Vice President of Investor Relations.

You may begin.

Todd Friedman

Thanks, operator. fiscal earnings our to everyone first call. quarter Welcome today Chief Chief Executive me Officer, on Rajeev our call the our With Officer, are Singh; Barnes. Steve Financial and question-and-answer Officer, Shantanu Chief will portion of join Nundy, the Health for our later. call the

measures Rajeev, Accolade's over be non-GAAP the the non-GAAP in between performance. and that Details the measures that are believe measures certain note most these to our on turning that can we please to website. comparable thereof Before important be financial press we the call will is discussing when GAAP on the reconciliations posted evaluating relationship found release

Also, please or results forward-looking for subject could from to by will defined the actual call note Private other materially those cause expressed risks, Securities the this uncertainties statements this are and in Act that factors Such statements during Litigation that Accolade forward-looking XXXX. as made be differ call. statements Reform implied to certain of

please cautionary SEC, all to information, the are on available For our which with our website. our statement press and filings of additional refer release our in

to like I'd to call the Singh. that, With our CEO, over Rajeev turn

Rajeev Singh

you, you, Thank joining us thank for today. Todd, everyone, and

to our healthcare of fiscal optimism entered with our nationwide care. our primary delivery advocacy-led a regarding QX and category opportunity system We of foundation build customer-obsessed company, the

get into Let's the reasons for excitement. our

care and expert some Strong opinion strength by the in offerings, growth in of both adjusted to million of leaving an position and in our fiscal ahead QX. for consumer guidance Revenue quarter with and guidance enterprise. start highlights loss Revenue health million, year. adjusted our segment of quarter recognition revenues. solid First, primary Accolade virtual mental ahead marked and performance-based the was continued and both financial previous early revenue $XX.X medical our were EBITDA of our in in both were EBITDA $XX.X the

prepared are growth to and We are this our quarter. both our EBITDA profitability revenue all firing cylinders. the give shortly. Steve increasing adjusted will on in Both engine you for remarks his guidance all path and details

Second, business, is foodservices the quarter strong. the more multiple and the include Fiscal vision is or the contracts, buyers in quarter pipeline paper to offerings validation more retail saw our is overall also and companies strong pipeline the as trusted and choose a first to put the on Accolade. for Fiscal powerful continues ecosystem. one pen new QX to season QX large our and We off and solutions. Notably, look a selling start. signing as major of we partner this well of embracing the as of importance view deals really

advocacy, reflective primary of in in and our is category. of making continued foundation win fair healthcare our more of suite. the factor personalized companies care ability From than category our market our critical a with This our differentiated our interest to advocacy-led for share we're evaluating

Third, two other for our out business. calling growth drivers of

on Expert As mental I care the both and are focus virtual primary Today, strength. business, medical our virtual demonstrating opinion Accolade expert care mentioned PlushCare, Care MD, Accolade and health our and primary business. we'll business, earlier,

expectations. On those and deployed care X, January adoption mental of customers on are our business, new up the from side primary all services fiscal year sales the fully health our of business XXXX to we according enterprise ramping last of and

notable. usage our it's of quarter Given the our that expectations year is in first first deployments, achieving

of here. remained growth few make GLP-X me we Since question demand to high-quality On the let continued and therapists about I'm see sure, by strong drugs, get for side the and care business, rates delivered consumer our comments a we'll steady. and of physicians a the longitudinal the strong impact

primary GLP-X weight care healthcare in from different in have said, to approach differs we associated companies to benefit interest reasons, how see loss a your benefiting who and attention two did the journey. drugs. is this Accolade That play these from space. Accolade's for part other this this to bring business out role a call our from is I companies in other with treatment than or a demand many options,

our is is obsession it rigor, and seasons. that services. is a ways resulted scores apply XX balanced is over customer and experience resources and for care how during that and This While same clinical COVID customer different focus in has in with primary primary virtual our GLP-X care. the driving we NPS fact virtual acquisition many physician care the primary are important or drugs What when demand for no virtual maintain than interest flu drove

teams delivery medications. ensuring drugs proper Dr. these and clinical Nundy the rigor that led we James care only and meet defined are don't prescribing prescribing apply patients Shantanu to Dr. who for the for by in We Our earn criteria money prescription. Wantuck

no So are there the incentives to driving contrary. behavior

help to COVID like expect needs because our with required drug. engage platform with and lifestyle Additionally, nature retain other lockdown, customers that who our the the health we of during patients behavioral as no the have many change might to service, be us of much such Thus, when the ultimately taking patient long-term. we ability longer on of these the

of the nature on in topic, point us Final suite this make market. the of our unique here robust offerings

seeking strong for be alternative a example, Virta and our these their while address everyone medications, members qualifies customers partners needs. may to For not for like

to business pursuing. Demonstration our opportunities Care Moving on, are other fourth, our we of Autism grow and government the on strength continues

date pushed The remains As protest but to that the remains protest the XXXX, has we still official now the on protest August previously, decision with award subject TX phase in timing. Health Net's to have in said been launch a due September.

and is updating to rollout to you TX planning continue on protest once with look work We timing that our and forward partners our complete.

proposition vital partner continues Fifth, for ecosystem, of value grow. our our trusted customers to the a element

Our available to by solutions number them customers benefit market. the in are overwhelmed buyers of the

to eating in a we quarter, leader for Equip, data add core strong ensure delivering those Last ecosystem Our solves programs. way categories. and a continue vetting partners efficacy by curated partners and technology added trusted in critical partner new adoption We'll highly to leverage and our treatments. that problem platforms in disorder

quarterly of in to Finally, the Accolade hundreds scale progress in is decision-making tremendous already more Accolade One on our and streamlining structure initiative. This our improving effect as customers and highlights, made we of more having serve terms operating we members. millions

Now, turn wrapping over up Steve, I to step giant briefly the a call at before backward our look take and let's opportunity.

welcoming to the that live in intimidates hindered opportunity person should healthcare system rooted is idea mission overly costly healthiest of an and and be should their that that the complex life people have Our opportunity not this every by them. instead

measurable one we advocacy-led population an engagement, is transforming strategy, personalized the for healthcare, healthcare through to health demonstrating outcomes, U.S. ROI our are and the that customers. system call We key

build succeeds The we're aspiring in United once delivering that is there primary the delivery States. first enormous. in customer-obsessed challenge, practice for the business To puts the nationwide care is is advocacy-led no That company opportunity the system of center again the address that heart but care. that that small to high an task, care of primary quality

last to percentage care total the gone of and years, of and reasons, utilization while skyrocket. a care spend as have pharmacy primary Over specialty variety spend continued has healthcare costs down, XX a for

means simplicity, their of Accolade's strategy and delivered our is The advocacy health, with of off doing that built prospects our voting for of are of foundation and clients opportunity a And virtual enormous. and reversing a service, by and service agreeing this data, care scalable trend. mental successfully dollars. primary is market

different Our ability influence journey healthcare significant many to the many has parts of vectors.

$XXX is dozens to Primary $XX north is also Advocacy partners opinion care Expert ecosystem of sized. capacity of is growing The immediately enable medical large and our federal is similarly government And a represents by extraordinary. a opportunity. health market. a addressable Mental itself billion. billion billion-plus a market huge and is $XXX the market. piece is

employees years real companies strategy than this programs. are vision. statement than and true Put X,XXX who our review We fewer into more companies the a to all we market. target our Today, you advocacy-led our goes adopted it see more have all would consumer. and consider for XX,XXX detail There the with over come together to healthcare of beneficiary encourage runway our XXX proxy on being which week, filed with benefits

our over to review Now, I'm Steve? going to Steve turn to the call financials.

Steve Barnes

Raj. Thanks,

the million opinion and then highlights fiscal in offerings, 'XX, fiscal grew excluding provide basis. X% representing Revenue XXXX. each recap revenue the $XX.X XX% year-over-year impact our medical quarter growth, of which pro fiscal of care quarter on I'll a large details in rest customer growth the in in of We first year-over-year XX% generated or primary First, the of termination range on strong for expert a forma the fiscal the and results first growth of the in included in 'XX. first quarter

forecasted earlier QX. to this in million in $X approximately as recognized also earned we we initially performance than revenue expected, QX, had be fiscal guarantee-related In PG

year, Day in savings-related PGs previously As notable. presentation the QX. generally are at extent start on May a recognized Markets those earlier, we've highlighted X, noted be they earned out fiscal forecast When PGs call the we we fiscal in will to our and them we that Capital our of

of Fiscal as compared revenue, performance. was in in year management contributed QX performance PG gross adjusted gross comparison spend impact, Net the as The the factor technology-driven guarantee XX.X% margin timing QX primary to gross last efficiencies, prior margin high XX.X% recognized was to period. that prudent of well year. impacting year-over-year margin

reflects of the roles dynamic on $XX.X of actions second was million. first overperformance, year. revenue profitability. as being fiscal management into some the continue a with continue on This transition in XX duplicative focus well in fiscal the reflects the office that will XXXX guidance half our to February costs from our The announced QX EBITDA positive and keen the we second Adjusted quarter path in we on loss versus we fiscal consolidate certain as of realized as spend Note as fully performance locations. quarter, fiscal of cost savings a

equivalents sheet, million cash of balance Turning the quarter. cash and fiscal at the end to the first $XXX totaled

years. reminder, As not are three notes about due our a convertible for

financial $XXX going a with adequate our than against cash placing objectives. we to back to hand, in capital million So markets, liquidity us achieve have the execute our position to without on plans strong more

outstanding. have shares approximately of common stock currently we XX.X Finally, million

Now, to We're our year guidance guidance. XXXX. updating fiscal for turning today

of representing XX% fiscal Given outlook are performance in noted raising the XXXX million, QX guidance excluding range year-over-year earlier. the million drive towards our a midpoint, to to strong of continued we $XXX profitability, well at as termination our optimistic growth, customer approximately on growth the and revenue $XXX fiscal as

raising quarter, adjusted outlook to EBITDA $XX to million $X EBITDA 'XX loss fiscal bottom loss our our million. in We the respect line, million to million. the now are on and $XX our of to with fiscal range million for $XX of to a are in we And updating year also full $XX to $XX of range range second guiding adjusted revenue the million

of at roughly combined basis shows the first profitability you as realized puts turn year, with towards fully expect EBITDA for annual half fiscal the guide our cost of full our an adjusted negative year $XX which, become EBITDA adjusted initiatives the second EBITDA when on significantly the 'XX. in year an and we million to corner adjusted be This for basis half guidance, positive the that we on

we'll And with to that, open questions. call the

Operator

from [Operator our question - comes our first Blair. And next Instructions] Daniels question from Ryan

is now Your line open.

Ryan Daniels

the one trend decade. evening. good could about healthcare in of taking that for for cost recent be data employers picture lot question. Maybe one Yes, a seeing for larger a a that you. big indicates of We're the increases Thanks XXXX

recognized believe at a really means battle do advocacy-led as kind this So, Number number to helping the you scale? initiative here. market? so, your in channel your trend And is to that if conversations widely that one, two-part maybe is then PCP Thanks. a being early two, of lead

Rajeev Singh

thanks on you for here. Ryan, being and question got jump and you've QX. anything Hi, the to see address the in thanks I'll if for question want

is hearing, view indexes, very that's early on the of think feedback consistent indexes significantly consultant community, First be or ahead are where or than the the with it year. higher the higher from at from line medical going trend has been materially in a looking part we our question, the we're both I year for past? the a and customers, years to the from

Ryan, I And is corollary very true. to the that, think,

other companies Now, at looking scale healthcare when or entirety at of companies population. broad-based GLP-X when solutions the waves problem hitting and the increased landscape are that at material things XXXX, significant that in changes in are their XXXX across the solve are for ecosystem looking they're cost, the looking with like

that's Primary no where think ourselves. basis. growth simplicity. but where the we part and service We differentiated, really that's builds quarter-for-quarter a primary in And think and differentiate care of on doubt a our we role it's really primary off you an surround care care the of advocacy is pipeline playing can data, with of story, platform a

Operator

from moment next one And question from you. our Craig question. next And thank Morgan comes Hettenbach our Stanley. for And

Your line open. now is

Craig Hettenbach

Raj, you. for medical bit some and of does more means the opinion, maybe strength demand here? Can a little expert you're like spoke to that maybe your of just thank the Yes, and patterns there's some out that color it outlook what some of you you give terms in pent-up there. seeing and look

Rajeev Singh

thanks Two first things glad question. Yes, opinion growth. of here. for Craig, the expert revenues all, that I'm drive and you're medical

rationally The service Are first see that with partner sales is to both that demand to we direct new our to channel. aligned customer strong. one yes. continues channel is And that The continuing acquiring so a strong do with answer We're and new there. growth for logo need like our be question acquisition. by growing The with we the customers? outside is

The continuing at driving rate to those business. that of seen, the and levels is utilization growth expert second see part the we've of and we're things utilization, medical previously that opinion both of story are

Operator

And from Inc. Stephens, thank our you. next next And question. one our moment Jeff question from for comes Garrow And

now is line open. Your

Jeff Garrow

Yes. question. taking for Good afternoon, guys, thanks the and

increased it on differentiator. a So, primary virtual as care emphasis hearing I'm like an sounds

more comment So, a I a on of interest mention an bit in you also could than the time. was hoping in that and at increase product one more little

of So, in. prospects any particular curious that relatedly to of on interested there, products hear themes are combinations

Rajeev Singh

Thanks Jeff. for the question,

question. closed back with in year, at you that bookings off of Let new than year and growth me year product. last had end start last when look we we your came the year, the more deals strong the the XX% year, saw one a year of with before, Last customer majority acquisition we

care the And as DMO, the was we the come products believing those so wanting plus trusted whether of capabilities deals suite a our in care, also with multiple majority advocacy that advocacy part think plus strategy, needs, health personalized saw We of that aligned advocacy to a platform that's reflective first plus sale. and with all partner, a see customers of of their understanding together. is to primary weave

continues this year. And so that trend into

the that that guess time costs that And member I a they're the we're what when of litany at are think, of so, experience. that to solve reduce facing improve are would looking becomes to I or over patient challenges they're who looking and and for just customers suite care norm experience solutions trying health

First been Jeff, of way part X an of X.X advocacy and today about you're say differentiated, your beginning platform from would when service talking a fundamentally on we advocacy care question, million the that the that we've is thinking about that members. between platform is primary million our particularly is

top extraordinary an of layering have experience of it. care delivering We're on advocacy. We now primary

on they're understanding that That that the has a superpower the primary and means the is, care an ecosystem patient. that a understanding patients that of of physician benefits that employer primary Accolade XXX-degree at facing, our really that have. what are other aligned conditions of serving, the the don't medications physicians history an has And for every physicians of care primary has and works we're that the gives care has that view also

understand of a and think And market, year solution. we I embrace customers strong the ago, think today proposition say, saw started of just year. Accolade utilization. primary year. deployed because more go we X. a And and so, it's our wanted in about pronounced What offering, those bringing it significant the part solution a learning to Care how as that seeing Jeff, and traction fair we were such we on value great their really to to we last terms customers market care We're saw in We in of the last to uptick January was got embrace I it's

Operator

thank for moment question. question you. one comes Jessica Piper our our from from And Sandler. next Tassan And And next

line now open. Your is

Jessica Tassan

and was, congrats then what just and is remind for much hoping this 'XX in the taking us in any margin? of for in were was the you whether change revenue adjusted the growth We Thank year-over-year there FX the what could performance that quarter. quarter, you so accounts guys. question, Hi, just on kind Thanks. Q

Steve Barnes

It's Thanks Yes, in QX. for Steve. guarantee certainly question. there impacts some the Hi, are Jessica. performance

walk just you me through. Let

quarter $XX range guidance the to So, million. for was million the $XX

$X the year. guarantee by we $X the range of QX, recognized recognized in $X and in later pull little a midpoint the There the So million, to forward of million beat be performance end range top more about little a was than million. we expected than that the of more

that call we out. So,

midpoint, top $X.X So $X call -- the million range. million the $X the true million at was, beat the it of at

back quarter a significant had a million. year, you'd little If last last QX than in more for guarantee fairly year, performance revenue this look to recognized in see you $X that item we

the high So, the of gross margin, change, comp for driving change, And the is XXs consistent expectations for it, call gross the there remain we most with, year year-over-year in of year. the outlook margin. full some the or actually

Operator

you. And from And question. question thank from of Bank our for And Cherny comes our next one next America. Michael moment

Your line open. is now

Unidentified Analyst

the how how partnership guess, that the that's is momentum in selling year seeing, XXXX partners, the volume there This of talked Virta, the you your that is I one for Mike. Raj, into lot think the is And already Thanks. season? maybe mentioned, Alan partners, how referral you important guess, talked he changed? in way the you're I I partnership questions. or for point strategy. guess, investor, about taking was think about their to about any you as And at a quantify Thanks driving business. total this I some strategy

Rajeev Singh

I question, the appreciate Alan.

season, to our is an customers. essential step looking part are customers the were you XXXX the to three you're season, to I way of Remember, we XXXX think the talking problems. value solve strategy if the position selling selling partnership whether back, core about

a the fundamentally they for it and get ecosystem better first, healthcare The existing makes experience difficult want employees. the believe for need. that They to they understand healthcare their that people

Ryan today, business to members And to numbers. is that beginning be his at have they're as big that trend able in question first impact off spoke want the to They big, very looking Second, their a wrestling their innovation finding they're thing ecosystem that trend and of managing. lines line. extraordinarily about third complicated control negative time but have buyers a on benefits healthcare difficult members, with their the of very is a carve-out to time very offer a suite with difficult solutions and an extraordinary whole have

That fundamentally third markets opportunity is ecosystem and our value partners with product and where been partners a to addressed of by value partner capacity forever. of we customers. trusted manage an behalf vetted to go proposition help to real set our essential we That's on build our to have proposition those integration the

grown has so seen that we've customers that what spoke Sami more integrations have driving value Day, behaviors. buying right, proposition ecosystem as as And of non-Accolade results and kinds Investor utilization versus That the impacts now crisp Xx the at clean customers delivered and it at Inkinen is is that, customers. depth, for the mentioned, Accolade we're about you so

about. in quantification, say, today at look so, of a to it we And couple speak I'd there's ways terms of that

First is the the breadth of relationships.

other more going in is broader the customers you'll ecosystem that categories all to than our space. has matter look find the in ecosystem the at, that to across categories think depth our that customers are and If looking any I you're those

should seeing about ecosystem things you our is that part of some we the of proposition customers one increasing an who taken we've course years value the have and give to customers. the couple heart last story over least been this that the second customer of of we're is talking at Alan, partner of fact right Those deliver the at majority The sense, two trusted that relationship. uptake

Operator

question And from And Stephanie comes moment Davis next one next thank our for And SVB you. question. our Securities. from

now is line Your open.

Stephanie Davis

bench of quarter. go this and Is them get partner breadth to more wanted Or want and you also who ecosystem. widest a there's folks exclusivity on question, peers? the for sort in I as where So a good partnering another that for variance that with Thanks is versus of it's might these my your and of that some competition something there's touch guys. where with? head-to-head possible network congrats question of of they're on something having in this partners? to some kind Hi, try taking trusted

Rajeev Singh

Stephanie. question, the for Thanks

neither think I of it's actually those.

me exclusivity. let so, of start with question And the

that members, good competition partners, fact, to In our in categories. our choice. innovation categories for and categories, we rationale partner certain ensuring breeds right certain which customers. and continue partner we for companies good for multiple with would The that is It in universe, the good companies of around our each those have multiple fundamentally to we for is our in with customers also the think expect

partners differentiation And also in have those which is where who customers your your the if value. be ourselves from integration potential have with could competitors also to opportunity differentiation partnership, real, we differentiate but category your exclusive building give to and investment is our those opportunity incremental build think partners, the with we in

that point. hopefully exclusivity the So, addresses

the it clinical to categories And we're we care of about, improved hard go that tangibly service, be lines. as we're going where point, can On impacts second can that focused have on and in to to outcomes breadth money, categories, categories they're deep. those going customers be where trend very think spending our on the categories relates

in. that of I of believe terms at of strategy are that choose partners. what category that going most terms and our of our think terms customers of maybe we're accountability, end in in are what's in at We the category But high high also top those the value interested We'll around end delivery, we end is, multitude choose of important three, two, a won't to a partners. couple, vet

the be categories about go the that vet. we we We'll necessarily that we that being focused won't So really and matter wide companies to. smart have on

Operator

comes question And Needham you. thank our And moment MacDonald our one from for from And Company. Ryan and question. next next

open. now is line Your

Ryan MacDonald

questions. Raj, the initiatives continues in you on the delays the business with taking nicely grow areas remarks, my contract. like on the but congrats some prepared talked in thanks for Care, quarter you've to TX there obviously, Autism Hi, government got about, and the

growth As to be? are opportunity continue government government primary dependent to TX And success that you to the vertical? about next do you what of we the years the couple with drivers on grow in able to here, think over be expect

Rajeev Singh

question the will for Ryan, Thanks ways. I of a in hit different couple

First Autism year-over-year Care - continued an business. of to exciting It a modestly part a be grew on basis. the

We to part that grow and have continue opportunity our grow it an of to and expect we to it continue government to forward. will important be an moving business

we're In other terms there inside grow universe opportunities to will beyond that, government parts from to they of relationship. we and government that continue of - are will multiple publicly, those then haven't conversations, of will, depths in that really pursue, evaluations is the course but the TRICARE because happening talked the universe of incremental we TX still to range the the about

fact, the believe government given now the to about unfortunately, presents talked tends process TX delay opportunity significant the relationship field that we've as We things.

delayed this August delay at so, of 'XX, know. we beyond don't it's least And at now potentially point could that, till it

think the But Care, pursuits is TX growth show our real the between what TX can we can with the Autism the there to opportunity arrangement, other very say arrangement. without categories. we between in a But is grow government, across strong we

Operator

question. next from Credit moment from Jonathan one And And Yong comes question Suisse. next your you. our for thank And

is line now Your open.

Jonathan Yong

here. Thanks congrats for a question quarter taking good the and on

you things than developing that expectations? on any like internal it and alongside it's But you sounds I guess, sounds you're tracking year last it your against well. how commentary, color Is pipeline the the are can like on pipeline any provide people larger just that? Just for are which more there's interest what or there. color a give about multi-product on guess color you But Thanks. before? I more in So selling looking additional solutions? think And I more give can little talked

Rajeev Singh

the are to was pipeline for Jonathan. expectations say than year the time. Hi, to year. support beyond have expectations this company that it wouldn't Pipeline continues we for bigger always aggressive Pipeline our a continues grow. the because in will I at grow but way last objectives is the our

same And were it As multiproduct of quite to last witnessed multi-product is deals year, that the phenomenon the relates deals deals. majority QX we're - same confident our phenomenon.

care We medical our of in customers categories, a ecosystem opinion, same differentiates desire will the through partner to our us happen stop QX because of solutions, we of against QX because are of the and breadth and that expert competition. advocacy, thing across and trusted confident quite primary number of - that breadth that mental of one health think a number shop our do of to and

Operator

thank our And next question. moment one Jailendra Securities. from you. comes next Truist our question And from Singh for And

Jailendra Singh

It's on a Congrats taking Thanks Truist questions. Securities. a This quarter. is from try. Singh for Jailendra good good my

on One of provider model your thoughts your your this care on with among offerings to demand in-home curious employer add home, extending competitors clients? I in have recently just announced to to virtual any your partnership in-home offerings. to care its area was and you seen

Rajeev Singh

thoughts a have couple of I here. Jailendra. Thanks

eating to see expand families, into really excited service today We called improving people, disorders. Equip continue company new we're for that's announced partnership partner category. us on focused you'll that really our by ecosystem First, about, challenged

I customers convenience boxes the delivering, that directly breadth do solutions for and aligned categories the health clinical to are If you look of about delivering and members could home in over lowering before improving we're for ensuring impact costs. as the time outcomes, to category an that that right an across is Absolutely we checking finding those please and - us, expectations. our those three customer's whether and in three stay potentially believe that with relevant mentioned of it's that always Do in tune partner widest the area categories? their we're we improving have is terms

Operator

comes And Guggenheim. moment from next our question And Draper And thank next question. you. one from our for Sandy

Your is now line open.

Sandy Draper

appreciate to probably Thanks you, taking the see am right, question. you can very if I I I frame much and this Steve. for trying

you M&A guidance and to and targets EBITDA, - up quarter, maybe step seeing do the are in as back to can looking think the market? about, year you losses, Or this set some R&D market, With lower or the okay, ourselves know the we just improving investors. closer way EBITDA in reinvestments prove really, we marketing, want we EBITDA back go outperformance that, through what, go is those and as sales change scale EBITDA margins you you beyond to the you into and closer prove maybe we to it get you

I'm of makes to - type hopefully a snap that you M&A performance is make about the think you're the strong but just by a sense. just Or changing with not to of either to Thanks. decision, think do terms start continues investments? internal this year, the let's really trying end going to it if margins, start year, just or in faster ramp of

Steve Barnes

Sandy. Yes. This Thanks Makes great Steve. is sense.

So of things. a couple

in very in of of fiscal Capital the timing Day and First half XXXX. of see we quarter we bottom could full profitability you'll three $X second the in year we're on focused investments better guidance we this most it be our all, a QX, Markets billion full-year on out had we by company raising that consider that, et laid year, for like a the for look, programs, lined of cetera. to right, the and about us call you're other as and by million will you But, things marketing and strong getting to basis $X be

So strategic very initiative operational us. important that's a for and

investing out and out Day. company growth to detail Raj the reasons lot of to ecosystem, there's believe while to diversified in the advocacy, laid opinion, in seeing also of care, also other we've lot the the platform given primary we're the business out, expert ways targets the we're has strength grow Sandy Investor a across driving for and partner we achieve laid profitability We being believe laid as amply medical a of and us for on strength the we

So guidance growth of how balance around color that's ties and profitability. it bit our little into the more a EBITDA and

Operator

And thank next you. our And Close question for And one our next from Canaccord question. from moment Genuity. comes Richard

Your line open. is now

Unidentified Analyst

any give was how Hi, on Thanks. and there the the hoping blue quarter. for great. you this provide you virtual can on Congrats would Richard Penney] is commentary on or be [John that's some Close. plan commentary just I progressing

Rajeev Singh

space. that have that to is continue and green actually the color news round I the I'd on going in bit that the news appreciate for early good We've hand, give partnership you continues really say, of us progress shoots utilization any delivered relationship relationship a we've in acquisition and we excited the and opportunity little first Yes. as kind and seeing. first the so The deployed we're tell in got seen it's the and I commentary to about question. expected, can that too is be we of the utilization good But you the the market space. we to to customer

Operator

And one our And Stan you. of thank Fargo. for question comes question. our next Berenshteyn next from Wells And moment

line is now open. Your

Stan Berenshteyn

channel? Maybe the Hi, be Enterprise acquisition can thanks for questions. growth the on customer to on costs What the you PlushCare. Thanks. my this consumer from coming come And year, side? will maybe taking percentage on of incremental expected comment also

Rajeev Singh

Sure. Sure. get this one? Steve, you want to

Steve Barnes

I'll start, jump you will then in.

we importantly, million the So business. consumer just largely as first for question that seeing the enterprise revenue the you of side than on by at is all, customers of half more the platform. coming today But several driven members growth the Stan thank launched you're in

of launched, but with So in first days, quarter. where early utilization it's most our line January that X so in those that we're seeing here expectations was on strong

growth on So also has we'll from expectations most consumer our see been the significant are side, the but near-term enterprise will that - contributions the of side.

would on it so XX past we've the amount, call the dollar the acquisition past costs, say there's I be time, capitalize to seen about customer getting to without to of we've same range lot that. a specific over months period in and respect attractive that seen consistently been With opportunities of

Operator

And next for question from And comes question. And next moment from our BTIG. our Larsen David thank one you.

now Your is open. line

David Larsen

good the quarter. on congrats Hi,

improve a comprehensive clearly and very very impacts robust that's quality of care. the trend and solution have You

implement we've of what not? a switch you Accolade, it sometimes One or they thoughts it. heard around just switch is things implement sometimes are you but Accolade, though implement your choose Thanks. can or carrier, customer to that the they lift, have ever potentially to call of centers that from decides back got may to from to TPAs a and that pushed or Appreciate that, get when heavy that? Do be to decides because not delay the

Rajeev Singh

the to about it. the question There's think David. Thanks way for

bookings public. when are has in very category, year at company of think bookings. strong it we at When XXX - as you QX, look and XXXX about base, looking XXXX, XX to of our we're talked had our customers. and growth our customer count, we If to about we time the on strong here our have ahead at Last went we a look customer relates we more than growth July XXXX growth by fiscal were fiscal the we the XXXX, from customers bookings grew X, XXXX a XX%,

representing customer category, and directly we where at driven growing this the going you the our scale to a perspective, from of customer look plans we're top-line $XXX services. healthcare new that's we business at aggressively about When know fundamentally there's to from about year, don't a a revenue of we of million I forecast just at always category growth million business, range talk enterprise the employers of our health in acquisition. this relates strength by strength to for adoption more guidance segment when a the those that took brand is as size. $XXX it each So new think the

that question hopefully answers Dave. So your

Operator

next D.A. our our you. And moment And question from one question. thank Robert from And next Davidson. comes for Simmons

line is Your open. now

Robert Simmons

like what the being for question. taking new Hi, strong, your put the or quarter year? actually grow much new they thanks did was wondering you and point for around your could are this bookings finer on if I commentary a sales expectations how

Steve Barnes

a question. outset about we've bookings of last at on year expectations the talked We at the XX%. for outperforming - growing traditionally growth consistent year, Thanks talk the on our the don't year-over-year numbers bookings even about in basis

to to that's we're that We basis about a ahead. XX% grow range thinking expect bookings the XX% way in on and year-over-year the year

And commentary the on so, year. end of we'll more give at you the color that

several can we mentioned prepared But questions, and you, remarks the tell what in as in we

have expectations past. we're than with our in we tracking the seen a stronger pipeline to

Operator

further I would to showing And questions. Todd to now like you. I'm thank no for And turn over closing the remarks. Friedman back call

Todd Friedman

with we here. appreciate for being we and us everyone the Thanks conversations. future to forward look spending Raj, you time

Operator

call. This concludes participating. for today's Thank conference you

disconnect. You may now

Accolade (ACCD) 29 Jun 232024 Q1 Earnings call transcript