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Nov 30, 2020

Accolade Q3 2021 Earnings Report

Revenue increased driven by new customer additions, but net loss was reported for the quarter.

Key Takeaways

Accolade reported a 30% increase in revenue for the fiscal third quarter 2021, driven by new customer additions across market segments and offerings. The company raised its revenue outlook for fiscal year 2021 to a range of $162 million to $165 million. However, the company reported a net loss of $16.6 million.

Fiscal third quarter 2021 revenue was $38.4 million, a 30% increase compared to fiscal third quarter 2020 revenue of $29.7 million.

Revenue growth was driven primarily by strength in new customer additions across market segments and offerings.

The company is raising revenue outlook for fiscal year 2021 to a range of $162 million to $165 million, representing growth of 22% to 25% over fiscal year 2020

Net loss was $(16.6) million, compared to $(18.3) million for the same period last year.

Total Revenue
$38.4M
Previous year: $29.7M
+29.7%
EPS
-$0.32
Previous year: -$0.528
-39.4%
Adjusted Gross Profit
$16.1M
Adjusted Gross Margin
41.8%
Gross Profit
$15.7M
Previous year: $12.1M
+29.6%
Cash and Equivalents
$419M
Free Cash Flow
-$12.8M
Total Assets
$467M

Accolade

Accolade

Forward Guidance

Accolade provides forward-looking guidance on Revenue and Adjusted EBITDA.

Positive Outlook

  • Revenue between $51.0 million and $54.0 million is expected for the fiscal fourth quarter ending February 28, 2021
  • Adjusted EBITDA between $(2.4) million and $(5.4) million is expected for the fiscal fourth quarter ending February 28, 2021
  • Revenue between $162.0 million and $165.0 million is expected for the full fiscal year ending February 28, 2021, up from the previous range of $159.0 to $162.0 million
  • Adjusted EBITDA between $(32.0) million and $(35.0) million is expected for the full fiscal year ending February 28, 2021
  • Company is raising revenue outlook for fiscal year 2021

Challenges Ahead

  • Adjusted EBITDA, a non-GAAP measure, between $(2.4) million and $(5.4) million is expected for the fiscal fourth quarter ending February 28, 2021.
  • Adjusted EBITDA, a non-GAAP measure, between $(32.0) million and $(35.0) million is expected for the full fiscal year ending February 28, 2021.
  • Company expects to incur expenses similar to the adjustments in this presentation in the future.
  • Forward-looking statements are subject to risks and uncertainties and are based on potentially inaccurate assumptions.
  • Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance.