After U.S. markets closed for trading yesterday, Accolade Inc. (ACCD:NASDAQ), which states that it strives to provide truly personalized, technology-enabled solutions to individuals to assist them in navigating and understanding the healthcare system and their respective plan benefits, announced financial results for the first quarter of 2023 ended May 31, 2022.
The company's CEO, Rajeev Singh, led off the report by commenting, "The healthcare consumer has never been more in need of true Personalized Healthcare. Two years into the Covid-19 pandemic, the healthcare system remains as complex and difficult to navigate as ever."
CEO Singh continued, "Our customers, their employees and direct consumers are increasingly turning to Accolade to solve a far more comprehensive set of healthcare challenges, while at the same time trying to manage the ever-rising cost of meeting those challenges. Our strong financial results in the first quarter demonstrate our success meeting those challenges, while our sales success this year with a number of marquee customers validates our vision and strategy."
Accolade advised that total revenue in Q1/23 increased by 44% to $85.5 million, compared to $59.5 million in Q1/22. For Q1/23, the company reported a GAAP net loss of $342.8 million versus a GAAP net loss of $48.7 million in Q1/22.
On a non-GAAP basis, the firm stated that for Q1/23 it had an adjusted EBITDA loss of $15.4 million, compared with an adjusted EBITDA loss of $12.8 million in Q1/22.
The firm added that during Q1/23 adjusted gross profit improved by 63% to $39.0 million, up from $23.9 million in the prior year's corresponding quarter.
Accolade CFO Steve Barnes stated, "The first quarter of FY/23 demonstrated the predictability of Accolade's business and our ability to flex our model to meet changing market dynamics. We outperformed our guidance on both revenue and Adjusted EBITDA by focusing on the two key drivers in our financial model: customer satisfaction to drive revenue performance, and effective expense management to deliver against our bottom line goals."
"We are raising the midpoint of our revenue guidance for FY/23 and reaffirming our commitment to consistently improve our Adjusted EBITDA loss, with an expectation for positive cash flow and Adjusted EBITDA in FY/25," Barnes added.
The company offered some forward guidance estimates and stated that for Q2/23 it expects total revenue of $82–83.5 million and an adjusted EBITDA loss in the range of $18–20 million.
Accolade advised that for FY/23 it expects revenue of $355–365 million and an adjusted EBITDA loss of $35–40 million.
Accolade is a healthcare solutions company headquartered in Plymouth Meeting, Pa., with offices in Seattle, Wash., Scottsdale, Ariz., Houston, Texas, and Prague in the Czech Republic. The firm endeavors to provide millions of people with personalized, data-driven navigational tools to improve and utilize their healthcare plans, aiding them to live their healthiest life possible. The firm employs the use of intelligent technology that is designed to help members optimize their care according to their specific needs via virtual primary care, mental health support and expert medical opinion services with the goal of improving health outcomes and lowering medical costs.
Accolade Inc. started the day with a market cap of around $526.9 million with approximately 71.2 million shares outstanding and a short interest of about 6.0%. ACCD shares opened 2% higher today at $7.55 (+$0.15, +2.03%) over yesterday's $7.40 closing price. The stock has traded today between $7.42 and $9.49 per share and is currently trading at $9.53 (+$2.13, +28.78%).
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