Accolade, Inc. (NASDAQ: ACCD) today announced financial results for
the fiscal first quarter ended May 31, 2023.
“Our consistently strong financial results
reinforce our belief that an advocacy-led care delivery strategy is
the key to transforming the U.S. healthcare system. We are seeing
the proof points in our growing customer base and sales momentum,
and also through our customers' outcomes, engagement and measurable
ROI. We are especially excited by the growth we are witnessing in
virtual primary care, which is the key to people living their
healthiest lives. For too long, healthcare has been a series of
siloed episodes. An advocacy-led care delivery strategy facilitates
a coordinated patient journey and tighter collaboration across the
healthcare ecosystem, while delivering better health outcomes and
tremendous customer satisfaction,” said Rajeev Singh, Accolade
Chief Executive Officer.
Financial Highlights for Fiscal First Quarter ended May
31, 2023
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended May 31, |
|
% |
|
|
|
2023 |
|
2022 |
|
Change(3) |
|
|
|
(in millions, except percentages) |
|
|
|
GAAP Financial
Data: |
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
93.2 |
|
|
$ |
85.5 |
|
|
9 |
% |
Net loss(1) |
|
$ |
(38.4 |
) |
|
$ |
(342.8 |
) |
|
89 |
% |
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial
Data(2): |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
(12.6 |
) |
|
$ |
(15.4 |
) |
|
18 |
% |
Adjusted Gross Profit |
|
$ |
40.6 |
|
|
$ |
39.0 |
|
|
4 |
% |
Adjusted Gross Margin |
|
|
43.5 |
% |
|
|
45.6 |
% |
|
|
|
(1) |
|
A non-cash goodwill impairment
charge of $299.7 million was recorded during the three months ended
May 31, 2022. |
(2) |
|
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." |
(3) |
|
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 exceeded both our top and bottom line guidance
in the first fiscal quarter. Our One Accolade initiative is
creating a more streamlined organization, benefiting overall costs,
decision making and strategic planning. We are raising our guidance
for both revenue and Adjusted EBITDA for the fiscal year and remain
confident in our path to achieving profitability.”
Financial Outlook
Accolade provides forward-looking guidance on
revenue and Adjusted EBITDA, a non-GAAP financial measure.
For the fiscal second quarter ending August 31,
2023, we expect:
- Revenue between $93
million and $95 million
- Adjusted EBITDA
between $(11) million and $(14) million
For the fiscal year ending February 29, 2024, we
expect:
- Revenue between
$410 million and $414 million
- Adjusted EBITDA
between $(6) million and $(12) 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,
June 29, 2023 at 4:30 p.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/BI923dbf9312d54b2da4cc7883c77e68c9).
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, IR@accolade.com
Media Contact:
Public Relations, Media@accolade.com
Source: Accolade
Financial Tables
Accolade, Inc. and
SubsidiariesCondensed Consolidated Balance Sheets
(unaudited)(In thousands, except share and per share
data)
|
|
|
|
|
|
|
|
|
May 31, |
|
February 28, |
|
|
2023 |
|
2023 |
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
302,870 |
|
|
$ |
321,083 |
|
Accounts receivable, net |
|
|
22,539 |
|
|
|
23,435 |
|
Unbilled revenue |
|
|
3,760 |
|
|
|
3,260 |
|
Current portion of deferred contract acquisition costs |
|
|
3,933 |
|
|
|
4,022 |
|
Prepaid and other current assets |
|
|
15,372 |
|
|
|
14,149 |
|
Total current assets |
|
|
348,474 |
|
|
|
365,949 |
|
Property and equipment,
net |
|
|
16,608 |
|
|
|
14,763 |
|
Operating lease right-of-use
assets |
|
|
28,080 |
|
|
|
29,525 |
|
Goodwill |
|
|
278,191 |
|
|
|
278,191 |
|
Intangible assets, net |
|
|
192,829 |
|
|
|
203,202 |
|
Deferred contract acquisition
costs |
|
|
9,679 |
|
|
|
9,815 |
|
Other assets |
|
|
1,846 |
|
|
|
1,624 |
|
Total assets |
|
$ |
875,707 |
|
|
$ |
903,069 |
|
Liabilities and
stockholders’ equity |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
5,461 |
|
|
$ |
10,155 |
|
Accrued expenses and other current liabilities |
|
|
13,782 |
|
|
|
11,744 |
|
Accrued compensation |
|
|
27,628 |
|
|
|
39,346 |
|
Due to customers |
|
|
14,761 |
|
|
|
15,694 |
|
Current portion of deferred revenue |
|
|
44,189 |
|
|
|
35,191 |
|
Current portion of operating lease liabilities |
|
|
6,915 |
|
|
|
7,284 |
|
Total current liabilities |
|
|
112,736 |
|
|
|
119,414 |
|
Loans payable, net of
unamortized issuance costs |
|
|
282,742 |
|
|
|
282,323 |
|
Operating lease
liabilities |
|
|
25,741 |
|
|
|
27,189 |
|
Other noncurrent
liabilities |
|
|
168 |
|
|
|
203 |
|
Deferred revenue |
|
|
142 |
|
|
|
154 |
|
Total liabilities |
|
|
421,529 |
|
|
|
429,283 |
|
|
|
|
|
|
|
|
Commitments and
Contingencies |
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
|
Common stock par value $0.0001; 500,000,000 shares authorized;
75,264,400 and 73,089,075 shares issued and outstanding at May 31,
2023 and February 28, 2023, respectively |
|
|
8 |
|
|
|
7 |
|
Additional paid-in capital |
|
|
1,446,873 |
|
|
|
1,428,073 |
|
Accumulated deficit |
|
|
(992,703 |
) |
|
|
(954,294 |
) |
Total stockholders’ equity |
|
|
454,178 |
|
|
|
473,786 |
|
Total liabilities and stockholders’ equity |
|
$ |
875,707 |
|
|
$ |
903,069 |
|
|
Accolade, Inc. and
SubsidiariesCondensed Consolidated Statements of
Operations (unaudited)(In thousands, except share and per
share data)
|
|
|
|
|
|
|
|
|
Three months ended May 31, |
|
|
2023 |
|
2022 |
Revenue |
|
$ |
93,226 |
|
|
$ |
85,528 |
|
Cost of revenue, excluding
depreciation and amortization |
|
|
54,203 |
|
|
|
47,615 |
|
Operating expenses: |
|
|
|
|
|
|
Product and technology |
|
|
25,899 |
|
|
|
26,817 |
|
Sales and marketing |
|
|
25,033 |
|
|
|
25,614 |
|
General and administrative |
|
|
16,080 |
|
|
|
20,238 |
|
Depreciation and amortization |
|
|
11,640 |
|
|
|
11,576 |
|
Goodwill impairment |
|
|
— |
|
|
|
299,705 |
|
Total operating expenses |
|
|
78,652 |
|
|
|
383,950 |
|
Loss from operations |
|
|
(39,629 |
) |
|
|
(346,037 |
) |
Interest income (expense),
net |
|
|
921 |
|
|
|
(634 |
) |
Other income (expense) |
|
|
390 |
|
|
|
(50 |
) |
Loss before income taxes |
|
|
(38,318 |
) |
|
|
(346,721 |
) |
Income tax benefit
(expense) |
|
|
(91 |
) |
|
|
3,899 |
|
Net loss |
|
$ |
(38,409 |
) |
|
$ |
(342,822 |
) |
|
|
|
|
|
|
|
Net loss per share, basic and
diluted |
|
$ |
(0.52 |
) |
|
$ |
(4.92 |
) |
|
|
|
|
|
|
|
Weighted-average common shares
outstanding, basic and diluted |
|
|
73,179,994 |
|
|
|
69,738,638 |
|
|
The following table summarizes the amount of
stock-based compensation included in the condensed consolidated
statements of operations:
|
|
|
|
|
|
|
|
|
Three months ended May 31, |
|
|
2023 |
|
2022 |
Cost of revenue, excluding
depreciation and amortization |
|
$ |
911 |
|
$ |
1,128 |
Product and technology |
|
|
6,966 |
|
|
7,490 |
Sales and marketing |
|
|
3,826 |
|
|
3,989 |
General and
administrative |
|
|
2,575 |
|
|
6,782 |
Total stock-based
compensation |
|
$ |
14,278 |
|
$ |
19,389 |
|
Accolade, Inc. and
SubsidiariesCondensed Consolidated Statements of
Cash Flows (unaudited)(In thousands)
|
|
|
|
|
|
|
|
|
Three months ended May 31, |
|
|
2023 |
|
2022 |
Cash flows from operating
activities: |
|
|
|
|
|
|
Net loss |
|
$ |
(38,409 |
) |
|
$ |
(342,822 |
) |
Adjustments to reconcile net loss to net cash used in |
|
|
|
|
|
|
Operating activities: |
|
|
|
|
|
|
Goodwill impairment |
|
|
— |
|
|
|
299,705 |
|
Depreciation and amortization expense |
|
|
11,640 |
|
|
|
11,576 |
|
Amortization of deferred contract acquisition costs |
|
|
1,116 |
|
|
|
817 |
|
Deferred income taxes |
|
|
— |
|
|
|
(3,999 |
) |
Noncash interest expense |
|
|
440 |
|
|
|
419 |
|
Stock-based compensation expense |
|
|
14,278 |
|
|
|
19,389 |
|
Changes in operating assets and liabilities, net of effect of
acquisitions: |
|
|
|
|
|
|
Accounts receivable and unbilled revenue |
|
|
396 |
|
|
|
2,323 |
|
Accounts payable and accrued expenses |
|
|
(1,690 |
) |
|
|
(1,258 |
) |
Deferred contract acquisition costs |
|
|
(891 |
) |
|
|
(924 |
) |
Deferred revenue and due to customers |
|
|
8,052 |
|
|
|
862 |
|
Accrued compensation |
|
|
(11,718 |
) |
|
|
(15,598 |
) |
Other liabilities |
|
|
(1,131 |
) |
|
|
(240 |
) |
Other assets |
|
|
(1,370 |
) |
|
|
(711 |
) |
Net cash used in operating activities |
|
|
(19,287 |
) |
|
|
(30,461 |
) |
Cash flows from investing
activities: |
|
|
|
|
|
|
Capitalized software development costs |
|
|
(2,500 |
) |
|
|
(766 |
) |
Purchases of property and equipment |
|
|
(877 |
) |
|
|
(506 |
) |
Net cash used in investing activities |
|
|
(3,377 |
) |
|
|
(1,272 |
) |
Cash flows from financing
activities: |
|
|
|
|
|
|
Proceeds from stock option exercises |
|
|
2,459 |
|
|
|
358 |
|
Proceeds from employee stock purchase plan |
|
|
1,992 |
|
|
|
1,150 |
|
Net cash provided by financing activities |
|
|
4,451 |
|
|
|
1,508 |
|
Net decrease in cash and cash equivalents |
|
|
(18,213 |
) |
|
|
(30,225 |
) |
Cash and cash equivalents,
beginning of period |
|
|
321,083 |
|
|
|
365,853 |
|
Cash and cash equivalents, end
of period |
|
$ |
302,870 |
|
|
$ |
335,628 |
|
Supplemental cash flow
information: |
|
|
|
|
|
|
Interest paid |
|
$ |
769 |
|
|
$ |
769 |
|
Fixed assets included in accounts payable |
|
$ |
506 |
|
|
$ |
228 |
|
Other receivable related to stock option exercises |
|
$ |
84 |
|
|
$ |
5 |
|
Income taxes paid |
|
$ |
53 |
|
|
$ |
22 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures
In addition to our financial results determined
in accordance with GAAP, we use the following non-GAAP financial
measures to help us evaluate trends, establish budgets, measure the
effectiveness and efficiency of our operations, and determine
employee incentives. We believe that non-GAAP financial
information, when taken collectively, may be helpful to investors
because it provides consistency and comparability with past
financial performance. However, non-GAAP financial information is
presented for supplemental informational purposes only, has
limitations as an analytical tool and should not be considered in
isolation or as a substitute for financial information presented in
accordance with GAAP. In addition, other companies, including
companies in our industry, may calculate similarly-titled non-GAAP
measures differently or may use other measures to evaluate their
performance. A reconciliation is provided below for each non-GAAP
financial measure to the most directly comparable financial measure
stated in accordance with GAAP. Investors are encouraged to review
the related GAAP financial measures and the reconciliation of these
non-GAAP financial measures to their most directly comparable GAAP
financial measures, and not to rely on any single financial measure
to evaluate our business. In evaluating these non-GAAP financial
measures, you should be aware that in the future we expect to incur
expenses similar to the adjustments in this presentation. Our
presentation of non-GAAP financial measures should not be construed
as an inference that our future results will be unaffected by these
expenses or any unusual or nonrecurring items.
Adjusted Gross Profit and Adjusted Gross
Margin
Adjusted Gross Profit is a non-GAAP financial
measure that we define as revenue less cost of revenue, excluding
depreciation and amortization, and excluding stock-based
compensation and severance costs. We define Adjusted Gross Margin
as our Adjusted Gross Profit divided by our revenue. We believe
Adjusted Gross Profit and Adjusted Gross Margin are useful to
investors, as they eliminate the impact of certain noncash expenses
and allow a direct comparison of these measures between periods
without the impact of noncash expenses and certain other
nonrecurring operating expenses.
Adjusted EBITDA
Adjusted EBITDA is a non-GAAP financial measure
that we define as net income (loss) adjusted to exclude interest
expense (income), net, income tax expense (benefit), depreciation
and amortization, stock-based compensation, acquisition and
integration-related costs, goodwill impairment, change in fair
value of contingent consideration, severance costs, and other
expense (income). Severance costs include severance payments
related to the realignment of our resources. Other expense (income)
includes foreign exchange gain or loss. We believe Adjusted EBITDA
provides investors with useful information on period-to-period
performance as evaluated by management and comparison with our past
financial performance. We believe Adjusted EBITDA is useful in
evaluating our operating performance compared to that of other
companies in our industry, as this measure generally eliminates the
effects of certain items that may vary from company to company for
reasons unrelated to overall operating performance.
Adjusted Gross Profit, Adjusted Gross Margin and
Adjusted EBITDA have certain limitations, including that they
exclude the impact of certain non-cash charges, such as
depreciation and amortization, whereas underlying assets may need
to be replaced and result in cash capital expenditures, and
stock-based compensation expense, which is a recurring charge.
The following table presents, for the periods
indicated, a reconciliation of our revenue to Adjusted Gross
Profit:
|
|
|
|
|
|
|
|
|
For the three months ended |
|
|
May 31, |
|
|
2023 |
|
2022 |
|
|
(in thousands, except percentages) |
Revenue |
|
$ |
93,226 |
|
|
$ |
85,528 |
|
Less: |
|
|
|
|
|
|
Cost of revenue, excluding depreciation and amortization |
|
|
(54,203 |
) |
|
|
(47,615 |
) |
Gross profit, excluding
depreciation and amortization |
|
|
39,023 |
|
|
|
37,913 |
|
Add: |
|
|
|
|
|
|
Stock‑based compensation, cost of revenue |
|
|
911 |
|
|
|
1,128 |
|
Severance costs, cost of revenue |
|
|
634 |
|
|
|
— |
|
Adjusted Gross Profit |
|
$ |
40,568 |
|
|
$ |
39,041 |
|
Gross margin, excluding
depreciation and amortization |
|
|
41.9 |
% |
|
|
44.3 |
% |
Adjusted Gross Margin |
|
|
43.5 |
% |
|
|
45.6 |
% |
The following table presents, for the periods
indicated, a reconciliation of our Adjusted EBITDA to our net
loss:
|
|
|
|
|
|
|
|
|
For the three months ended |
|
|
May 31, |
|
|
2023 |
|
2022 |
|
|
(in thousands) |
Net loss |
|
$ |
(38,409 |
) |
|
$ |
(342,822 |
) |
Adjusted for: |
|
|
|
|
|
|
Interest expense (income), net |
|
|
(921 |
) |
|
|
634 |
|
Income tax (benefit) expense |
|
|
91 |
|
|
|
(3,899 |
) |
Depreciation and amortization |
|
|
11,640 |
|
|
|
11,576 |
|
Stock‑based compensation |
|
|
14,278 |
|
|
|
19,389 |
|
Acquisition and integration‑related costs(1) |
|
|
27 |
|
|
|
— |
|
Goodwill impairment |
|
|
— |
|
|
|
299,705 |
|
Severance costs(2) |
|
|
1,102 |
|
|
|
— |
|
Other expense (income) |
|
|
(390 |
) |
|
|
50 |
|
Adjusted EBITDA |
|
$ |
(12,582 |
) |
|
$ |
(15,367 |
) |
(1) |
|
For the three months ended May
31, 2023, acquisition and integration-related costs represent
expenses associated with litigation inherited through the PlushCare
acquisition. Refer to Note 10 in our condensed consolidated
financial statements for further details. |
(2) |
|
Severance costs represent
expenses associated with workforce realignment actions taken by
management. |
Accolade (NASDAQ:ACCD)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Accolade (NASDAQ:ACCD)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024